Kyle Davies Unapologetic for 3AC Failure, Aims to Evade Prison

Kyle Davies, co-founder of fund 3AC expressed no remorse for losing billions of investor dollars and intends to evade jail time.

Kyle Davies, the co-founder of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC), has stated that he is not sorry that he lost billions of dollars in investor cash and intends to avoid jail time in any way possible.

Davies reaffirmed his lack of remorse for the collapse of 3AC on an edition of the Unchained Podcast that aired on March 19.

He also maintained confidence that his professional reputation was still intact, despite receiving a significant amount of condemnation on social media for his previous offenses.

Are you sorry that a corporation has decided to go bankrupt? No. To put it another way, businesses fail regularly,”Kyle Davies chuckled.

Davies continued by saying, “At the very least, we could teach the next Three Arrows how to do things better when they go bankrupt,” in response to a query regarding his plans for the future.

When asked about his whereabouts, Kyle Davies responded that he was “in Europe” and that he “bounced around between Europe and Asia.”

Davies stated that he would make attempts to avoid returning to Singapore to prevent the possibility of spending time in jail.

During the previous month, he stated in an interview with New York Magazine that he was living in Portugal.

An announcement on the debut of OPNX, a hybrid bankruptcy claims platform and cryptocurrency exchange, was made by Davies and Zhu in April 2023.

Davies described the company’s introduction as “very impressive” in the podcast, expressing his continued respect within the cryptocurrency field. On February 1st, OPNX announced that it would completely shut down and end all operations by February 14th.

Teneo, the company responsible for liquidating 3AC, allegedly accused him and co-founder Su Zhu of “not cooperating”. Kyle Davies also argued that Teneo overstated these allegations.

Davies stated that it was “literally the liquidator’s job” to make it appear that the two individuals were being recalcitrant on the part of the liquidator to recover further monies.

Davies and Zhu received a subpoena through Twitter messages on January 5, 2023. This was because the two individuals had avoided communicating with the appropriate authorities and had “not yielded satisfactory cooperation” with liquidators who were present at the time.

On the 21st of December, a court in the British Virgin Islands placed a freeze on the assets of Davies and Zhu, which totaled $1.14 billion. Teneo has since calculated that the bankruptcy of the hedge fund in 2022 still owes creditors of 3AC around $3.3 billion.

Teneo is attempting to recover $1.3 billion directly from Zhu and Davies. Teneo asserts that Zhu and Davies took on massive leverage levels with investor funds after 3AC went bankrupt.

The Central Bank of Singapore issued nine-year prohibition orders against Davies and Zhu in September of the previous year. Allegations that they violated Singapore’s securities laws while operating 3AC led to the issuance of these orders.