Defunct cryptocurrency hedge fund Three Arrows Capital (3AC) co-founder Kyle Davies has expressed no remorse for losing billions of dollars of investor funds and has vowed to avoid imprisonment by any means necessary.
During an episode of the Unchained Podcast on March 19, Davies reiterated his lack of regret for the collapse of 3AC and remained steadfast in his belief that his professional reputation remained intact, despite facing severe criticism on social media for his past actions.
When asked if he felt sorry for the company’s bankruptcy, Davies responded with laughter, stating, “Am I sorry for a company going bankrupt? No. Like, companies go bankrupt all the time.”
In response to a question about his future plans, Davies suggested that the next Three Arrows could learn from their mistakes, saying, “Maybe at a minimum, we could tell the next Three Arrows how to do things better when they go bankrupt.”
Davies also revealed his intentions to avoid returning to Singapore in order to evade potential jail time. When questioned about his whereabouts, he claimed to be “in Europe” and mentioned that he had been moving between Europe and Asia. Last month, he told New York Magazine that he was residing in Portugal.
In April 2023, Davies and Su Zhu announced the launch of OPNX, a hybrid bankruptcy claims platform and cryptocurrency exchange. Davies described the company’s launch as “very impressive” during the podcast and asserted that he still held a respected position within the crypto industry.
However, on February 1, OPNX announced that it would be ceasing all operations and shutting down completely by February 14.
Davies disputed the allegations made by Teneo, the firm responsible for 3AC’s liquidation, that he and co-founder Su Zhu were uncooperative. He claimed that the liquidator exaggerated their lack of cooperation to recover more funds, stating, “It was ‘literally the liquidator’s job’ to make it appear as though the pair were being uncooperative.”
On January 5, 2023, Davies and Zhu were served subpoenas via Twitter messages due to their avoidance of communication with relevant authorities and their failure to cooperate satisfactorily with liquidators at the time.
In December 2022, a British Virgin Islands court froze $1.14 billion worth of Davies and Zhu’s assets. Teneo has estimated that 3AC creditors are still owed approximately $3.3 billion following the hedge fund’s collapse.
Teneo is currently attempting to recover $1.3 billion directly from Zhu and Davies, claiming that they utilized significant amounts of leverage with investor funds after 3AC became insolvent.
In September of last year, Singapore’s central bank issued nine-year prohibition orders against Davies and Zhu for alleged violations of the country’s securities laws during their operation of 3AC.
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On December 21, a British Virgin Islands court froze $1.14 billion worth of assets belonging to Davies and Zhu. Teneo has since estimated that 3AC creditors are still owed around $3.3 billion after the hedge fund’s collapse in 2022.
Teneo is currently seeking to recover $1.3 billion directly from Zhu and Davies, alleging that they took on significant leverage with investor funds after 3AC became insolvent.
In September of last year, Singapore’s central bank issued nine-year prohibition orders against Davies and Zhu, citing alleged violations of the country’s securities laws during their tenure at 3AC.
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