Kyle Davies, co-founder of the now-defunct crypto hedge fund Three Arrows Capital (3AC), expressed no remorse for losing billions of investor funds and stated his determination to avoid going to jail. 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 had no reason to be sorry. When asked about his future plans, Davies suggested that he could offer advice to the next Three Arrows to help them avoid the same fate.
Davies also revealed his intention to stay away from Singapore in order to evade potential imprisonment and claimed that he was currently in Europe. He had previously told New York Magazine 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. During the podcast, Davies praised the launch of the company and insisted that he still held a respected position within the crypto industry.
However, on February 1, OPNX announced that it would be shutting down completely by February 14. Davies dismissed claims made by Teneo, the firm handling 3AC’s liquidation, that he and Su Zhu were uncooperative. According to Davies, the liquidator was exaggerating their lack of cooperation to recover more funds. In January 2023, Davies and Zhu were subpoenaed via Twitter messages due to their avoidance of communication with authorities and unsatisfactory cooperation with liquidators at the time.
In December 2022, a court in the British Virgin Islands froze $1.14 billion worth of Davies and Zhu’s assets. Teneo estimated that creditors of 3AC 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, claiming that they used large amounts of 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 during their time at 3AC.