Kyle Davies ‘not sorry’ for 3AC collapse, plans to avoid jail

Three Arrows Capital co-founder Kyle Davies appeared on a podcast and showed little remorse for his firm’s creditors and said he plans to avoid spending any time in a Singaporean prison.

Defunct crypto hedge fund Three Arrows Capital (3AC) co-founder Kyle Davies says he’s not sorry he lost billions of investor funds and plans to avoid jail time however possible.

On a March 19 episode of the Unchained Podcast, Davies reiterated his lack of remorse for the collapse of 3AC and remained adamant that his professional reputation was still intact despite receiving outsized backlash for his past misdeeds on social media.

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

“Maybe at a minimum, we could tell the next Three Arrows how to do things better when they go bankrupt,” added Davies in response to a question about his future plans.

Davies said he would make efforts to avoid returning to Singapore in a bid to avoid risking jail time and claimed he was “in Europe” when asked his whereabouts adding that he “bounced around between Europe and Asia.”

He claimed to New York Magazine last month that he was residing in Portugal.

In April 2023, Davies and Zhu announced the launch of OPNX, a hybrid bankruptcy claims platform and crypto exchange. In the podcast, Davies described the launch of the company as “very impressive” and asserted that he remained a well-respected figure within the crypto industry.

On Feb. 1, OPNX said it would be ceasing all operations and shutting down completely by Feb. 14.

Davies also claimed the allegations from Teneo — the firm in charge of 3AC’s liquidation — that he and co-founder Su Zhu were “not cooperating” were exaggerated.

It was “literally the liquidator’s job” to make it appear as though the pair were being uncooperative in a bid to recover more funds, Davies said.

On Jan. 5, 2023, Davies and Zhu were subpoenaed via Twitter messages due to the pair avoiding communication with the relevant authorities and “not yielding satisfactory cooperation” with liquidators at the time.

On Dec. 21, a British Virgin Islands court froze $1.14 billion dollars of worth of Davies and Zhu’s assets. Teneo has since estimated that 3AC creditors are still owed roughly $3.3 billion following the hedge fund’s collapse in 2022.

Teneo is currently seeking to recover $1.3 billion directly from Zhu and Davies, claiming they took on significant amounts of leverage with investor funds after 3AC became insolvent.

In September last year, Singapore’s central bank issued nine-year prohibition orders to Davies and Zhu over alleged violations of the country’s securities laws while they operated 3AC.

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