Kyle Davies, co-founder of the defunct crypto hedge fund Three Arrows Capital (3AC), recently expressed his lack of remorse for losing billions of investor funds and his determination to avoid jail time. During an episode of the Unchained Podcast on March 19, Davies laughed off the bankruptcy of 3AC, stating that companies go bankrupt all the time and he sees no reason to apologize for it. When asked about his future plans, Davies mentioned that he could offer advice to the next Three Arrows on how to handle bankruptcy better.
Davies also revealed that he would make efforts to avoid returning to Singapore in order to evade potential jail time. When questioned about his whereabouts, he claimed to be in Europe, bouncing between Europe and Asia. However, in a recent interview with New York Magazine, he stated that he was residing in Portugal.
In April 2023, Davies and Su Zhu announced the launch of OPNX, a hybrid bankruptcy claims platform and crypto exchange. Davies expressed his admiration for the company’s launch during the podcast and emphasized that he still held a respected position within the crypto industry.
On February 1, OPNX announced that it would cease all operations and shut down completely by February 14. Davies dismissed the allegations from Teneo, the firm handling 3AC’s liquidation, claiming that he and Su Zhu were not cooperating. He believed that the liquidators were exaggerating their lack of cooperation to recover more funds.
Davies and Zhu were subpoenaed via Twitter messages on January 5, 2023, due to their avoidance of communication with the relevant authorities and their unsatisfactory cooperation with the liquidators at the time.
In December 2022, a British Virgin Islands court froze $1.14 billion worth of Davies and Zhu’s assets. Teneo estimated that 3AC creditors are still owed approximately $3.3 billion after the hedge fund’s collapse.
Teneo is currently attempting 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 the previous year, Singapore’s central bank issued nine-year prohibition orders against Davies and Zhu for alleged violations of the country’s securities laws while operating 3AC.