By Ethan Huff
The Three Arrows Capital saga is far from over after it was revealed that the now-defunct crypto hedge fund is part of an international criminal conspiracy involving massive financial fraud.
An obscure legal entity, reports indicate, continues to aggressively trade digital assets and is possibly shielding some of them from recovery.
“While Three Arrows Capital used its tens of billions of dollars of assets under management to invest in new projects and take large market positions, it also operated an over-the-counter trading desk called Tai Ping Shan (TPS) Capital,” Coindesk‘s Sam Reynolds explains.
“The entity was once described on LinkedIn as ‘the official OTC desk of Three Arrows Capital,’ according to a scraped version of the site by Google, but the language has since been changed, distancing the two firms.”
Even as its parent company faces liquidation in the British Virgin Islands along with an investigation in Singapore, TPS Capital is trading as though nothing has changed.
Those suing and seeking restitution from Three Arrows Capital face serious barriers to recovery because of this legal separation. TPS Capital, named after Tai Ping Shan Mountain in Hong Kong, is registered in Singapore but domiciled in the British Virgin Islands.
“The parent company is now facing a lawsuit but, according to corporate filings, TPS Capital has a different ownership structure and hidden directors,” Reynolds adds. (Related: Check out our earlier coverage on Three Arrows Capital.)
So much of the crypto world is a massive scam (just like Wall Street)
The Singapore filings of Three Arrows Capital convey a much different financial situation than the one the company claimed publicly. The alleged billions of dollars that were supposedly being managed by the fund do not match its reported income in Singapore – so where is the money?
A 2020 fiscal year end filing shows that Three Arrows Singapore reported S$3.3 million (U.S.$2.36 million) in total assets, along with S$1.15 million (U.S.$823,015) in profit for that year. Two of the company’s directors also received S$6.33 million in dividends.
A Singapore-based person involved in the institutional digital assets industry, who spoke to CoinDesk on the condition of anonymity, said TPS held and traded most of Three Arrows’ treasury,” reports explain.
“Another person, in a similar position at an Asia-based institutional crypto firm, also speaking with CoinDesk on a condition of anonymity, said that TPS is ‘where the action was’ for Three Arrows.”
The government of Singapore is not at all happy with Three Arrows, which misreported the size of its holdings. The Monetary Authority of Singapore also called into question the solvency of the fund, revealing that an investigation is underway to determine “if there were further breaches.”
“But while Three Arrows has filed for bankruptcy in New York (it has yet to declare bankruptcy in Singapore as of July 2), TPS continues to use capital to trade, the people with information said,” reports further explain.
“The question is, can regulators or plaintiffs in the suit pierce the corporate veil between the two firms?”
The LinkedIn page for TPS Capital, meanwhile, no longer shows any connection to Three Arrows Capital. Someone went in there and sanitized the page to make it seem as though there was never any connection between the two firms.
“The world is run by criminals,” wrote someone who reads Natural News. “Be careful trusting them with your money.”
“And over 90 percent of all crime is committed in the U.S. dollar,” noted another about how fiat currency is arguably the biggest scam of all.
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Sources for this article include: