Kyle Davies Unapologetic Over 3AC Failure, Aims to Dodge Prison Time

Kyle Davies, co-founder of Three Arrows Capital (3AC), displayed little remorse for the collapse of the crypto hedge fund during a recent podcast appearance. Expressing his lack of regret for the loss of billions in investor funds, Davies asserted his determination to evade incarceration in Singapore.

During the Unchained Podcast episode on March 19, Davies reiterated his indifference towards the downfall of 3AC and maintained his assertion that his professional standing remains unscathed, despite facing considerable criticism on social media for previous actions.

“Am I sorry for a company going bankrupt? No. Like, companies go bankrupt all the time,” chuckled Davies.

In response to inquiries about his future endeavors, Davies hinted at guiding future ventures like Three Arrows Capital on avoiding similar pitfalls. He disclosed plans to steer clear of Singapore to circumvent legal repercussions, claiming to be residing in Europe, with occasional travels to Asia.

Davies had earlier stated his residence in Portugal to New York Magazine.

In April 2023, Davies and Su Zhu launched OPNX, a hybrid platform combining bankruptcy claims and crypto exchange services. While praising the company’s launch as “remarkable” during the podcast, Davies asserted his enduring respect within the crypto community.

However, OPNX announced its closure on Feb. 1, ceasing operations by Feb. 14.

Refuting claims of non-cooperation with Teneo, the firm overseeing 3AC’s liquidation, Davies dismissed allegations, attributing them to efforts to bolster fund recovery. He described Teneo’s accusations as exaggerated attempts to depict him and Su Zhu as uncooperative.

Subpoenaed via Twitter messages on Jan. 5, 2023, for alleged evasion of communication with authorities and inadequate cooperation with liquidators, Davies and Zhu faced further legal actions.

In December 2022, a British Virgin Islands court froze assets worth $1.14 billion belonging to Davies and Zhu. Teneo estimates creditors are owed approximately $3.3 billion following 3AC’s collapse.

Teneo aims to recover $1.3 billion directly from Davies and Zhu, alleging excessive leveraging of investor funds after 3AC’s insolvency.

In September of the previous year, Singapore’s central bank issued nine-year prohibition orders against Davies and Zhu for purported violations of securities laws during 3AC’s operation.