Unapologetic 3AC Co-founder Kyle Davies Maintains Professional Integrity Despite Fund Collapse
Summary:
Kyle Davies, co-founder of the collapsed crypto hedge fund Three Arrows Capital (3AC), remains unapologetic about losing billions in investor funds. In the Unchained Podcast, Davies refuted allegations of cooperation failure during the liquidation process led by Teneo. Davies, along with Su Zhu, previously launched OPNX, a bankruptcy-claims platform and crypto exchange that ceased operations early this year. Davies and Zhu's assets worth approximately $1.14 billion were seized by a court in the British Virgin Islands. Legal firm Teneo is attempting to recoup $1.3 billion directly from the duo.
The co-founder of the collapsed cryptocurrency hedge fund, Three Arrows Capital (3AC), Kyle Davies, has expressed no regret over losing billions of investor funds. He stated in an episode of the Unchained Podcast on March 19 that he is unrepentant about 3AC's downfall and maintains that his professional credibility remains unscathed despite a wave of criticism on social media related to his past indiscretions. Grinning, Davies said he didn't feel guilty about the company's bankruptcy. He also hinted that his future endeavors could potentially guide the next Three Arrows to better handle bankruptcy. In a bid to evade serving jail time, Davies revealed that he would try his best not to go back to Singapore and alleged that he was in Europe and frequently shuttled between Europe and Asia. Last month, New York Magazine reported that he was living in Portugal. In 2023, Davies and Zhu unveiled OPNX, a combined platform for bankruptcy claims and crypto exchange. Davies favorably categorized the company's launch as "very remarkable" and maintained that he remained a respected individual in the crypto industry. On February 1, OPNX announced that it would cease all operations and completely close down by February 14. Davies contested claims by Teneo, the firm responsible for 3AC’s liquidation, that he and co-founder Su Zhu were “uncooperative”, pointing out that it was the liquidator's role to frame them as such to recover more funds. On January 5, 2023, Davies and Zhu were served subpoenas through Twitter messages due to their evasion of contact with relevant authorities and insufficient cooperation with liquidators. On December 21, a court in the British Virgin Islands froze about $1.14 billion worth of assets belonging to Davies and Zhu. Teneo subsequently estimated that 3AC creditors were still owed around $3.3 billion following the collapse of the hedge fund in 2022. Teneo is currently attempting to recover $1.3 billion directly from Zhu and Davies, alleging that they leveraged substantial amounts of investors’ funds after 3AC became insolvent. Last September, Singapore's central bank slapped Davies and Zhu with nine-year prohibition orders for suspected violations of the nation's securities laws while they ran 3AC. The news relates to a magazine feature on "Inside Pink Drainer", where a security analyst defends his cryptocurrency scam group.
Published At
3/20/2024 4:34:52 AM
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