Davies claims that he became a permanent resident of Singapore in 2017.
The co-founder of failed Three Arrows Capital Kyle Davies has said that he doesn’t have to respond to US courts.
Davies said in recent documents that he became a permanent resident of Singapore years ago.
Three Arrows Capital Co-founder denies US courts audience
Collapsed Three Arrows Capital Co-founder Kyle Davies has said that he renounced his American citizenship years ago. As a result, he contends that he doesn’t need to answer to US courts.
In a court document released on Tuesday, Davies mentioned that he became a permanent resident of Singapore in 2017.
Singapore doesn’t allow dual citizenship, hence Davies have renounced his American citizenship once he got married.
The statutory declaration said: “For the avoidance of doubt, I am not subjecting myself to, or accepting the jurisdiction of, the Courts in the United States.”
Davies filing was prompted by a subpoena served at the behest of 3AC liquidators to get information regarding the demise of the cryptocurrency hedge fund. Since their physical whereabouts were unknown, Su Zhu and Davies were both subpoenaed on X (formerly Twitter) in January. However, parties have claimed Davies should be placed in contempt of court for disobeying the order.
Living large on failed firm
Since the crypto hedge fund went bankrupt last year, it’s been in the news for more wrong reasons.
Three Arrows Capital liquidators last month demanded $1.3B from its founders Su Zhu and Davies.
Since the crash, liquidators have been able to secure a $30M yacht, $35.6M cash held in bank accounts, and Sotheby also auctioned off NFTs owned by Three Arrows Capital.
Despite, a New York Times report showed how the co-founders have continued to enjoy their loot despite owing creditors. The report showed that while their creditors battled with the aftermath of the firm’s implosion, its two founders spent the next year surfing, meditating, and travelling the world.
Court documents have also shown that Davies has repeatedly flouted his obligations throughout the bankruptcy process.
3AC is one of many cryptocurrency firms that fell when the value of Bitcoin began to fall last year, causing UST, the third-largest stablecoin by market size, to lose its peg. The collapse of 3AC was a significant event that set off the crypto winter of last year, which in turn led to the failure of other crypto firms that had exposure to the hedge fund.
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