Home Editor's Pick No Jail for Me: 3AC Co-Founder Kyle Davies Shows No Remorse for Billions Lost

No Jail for Me: 3AC Co-Founder Kyle Davies Shows No Remorse for Billions Lost

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Kyle Davies, the co-founder of the now-defunct crypto hedge fund Three Arrows Capital (3AC), recently appeared on the Unchained Podcast, where he expressed no remorse for the company’s bankruptcy and the billions of dollars in investor funds lost as a result.

Davies’ unapologetic stance has drawn criticism from the crypto community, as many investors and creditors continue to grapple with the fallout from 3AC’s collapse.

TLDR

Kyle Davies, co-founder of the now-defunct Three Arrows Capital (3AC), refused to apologize for the crypto hedge fund going bankrupt.
Davies stated that he would not return to Singapore immediately to avoid facing a four-month sentence but expects a settlement in the future.
Despite the collapse of 3AC, Davies and his co-founder Su Zhu launched OPNX, a bankruptcy claims exchange, which was later shut down due to regulatory issues.
Singapore’s central bank issued a nine-year ban against the 3AC founders, prohibiting them from operating in the country’s regulated financial services industry.
A British Virgin Islands court froze over $1 billion in assets belonging to the 3AC founders, and liquidators estimate that creditors are still owed roughly $3.3 billion.

During the interview, Davies dismissed the notion that he should be sorry for the company’s bankruptcy, stating that companies go bankrupt all the time.

He even suggested that he and his co-founder, Su Zhu, could advise the next iteration of Three Arrows on how to handle bankruptcy better.

This statement has been met with disbelief and anger from those affected by 3AC’s downfall, as it appears to trivialize the significant financial losses incurred by investors.

Three Arrows Capital, once a prominent player in the crypto industry, suffered heavy losses during the mid-2022 crypto market downturn, leading to insolvency proceedings in the British Virgin Islands, Singapore, and the United States. The collapse of the hedge fund has left creditors owed an estimated $3.3 billion, with liquidators now seeking to recover $1.3 billion directly from Davies and Zhu.

Despite the ongoing legal troubles, Davies and Zhu have not shied away from new ventures in the crypto space. In April 2023, they launched OPNX, a hybrid bankruptcy claims platform and crypto exchange, from their base in Dubai.

However, within a month, the exchange was reprimanded by Dubai’s crypto regulator for operating without proper licensing and was subsequently shut down in February 2024.

Davies’ refusal to return to Singapore to face a four-month sentence, similar to the one served by Zhu, has also raised eyebrows. While he claims to be “in Europe,” Davies has not confirmed his exact location, leading to speculation about his efforts to avoid legal consequences.

His statement that he would not be returning to Singapore “immediately” but expects a settlement in the future has been met with skepticism, as it appears to suggest a lack of accountability for his actions.

The 3AC co-founder’s apparent lack of remorse and his attempts to avoid facing the consequences of the hedge fund’s collapse have further eroded trust in the crypto industry.

Many investors and observers are calling for greater transparency and accountability from those who manage large sums of investor funds, as the 3AC case highlights the potential for mismanagement and the devastating effects it can have on individuals and the broader crypto ecosystem.

As the legal proceedings against Davies and Zhu continue, the crypto community will be watching closely to see if they are held responsible for their role in 3AC’s collapse.

The post No Jail for Me: 3AC Co-Founder Kyle Davies Shows No Remorse for Billions Lost appeared first on Blockonomi.

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