Kyle Davies: No Remorse for the Collapse of Three Arrows Capital
Kyle Davies, the co-founder of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC), recently expressed his lack of remorse for the company’s collapse in 2022 and the subsequent loss of billions of dollars from investors. In an interview with Laura Shin on the Unchained Podcast, Davies made it clear that he has no intention of accepting responsibility or facing jail time for his actions.
Recalling Three Arrows’ Collapse
In mid-2022, Three Arrows Capital collapsed due to heavy losses suffered during the crypto market downturn. A British Virgin Islands court ordered the liquidation of the company’s assets, revealing that it owed its creditors around $3.3 billion. Since then, Davies and his partner Zhu Su have been in hiding, launching and closing various crypto businesses while evading authorities.
Avoiding Jail Time
Davies stated during the interview that he is currently in Europe and has no plans to return to Singapore, where Su was arrested in September 2023. By staying away from Singapore, Davies hopes to avoid serving a four-month prison sentence like his partner. He intends to settle matters with the appropriate authorities before considering a return to Singapore.
“Am I sorry for a company going bankrupt? No. Like, companies go bankrupt all the time. Every company goes bankrupt. It’s what you do about it and how you build,” Davies stated.
Teneo’s Exaggerated Claims
Davies believes that despite the criticism he has received on social media, his reputation remains intact. He dismissed complaints from individuals and entities unaffected by 3AC’s collapse, including FTX founder Sam Bankman-Fried and Digital Currency Group. Davies pointed to the successful launch of OPNX as evidence that he is still respected in the industry.
In addition, Davies disputed Teneo’s allegations that he and Su were uncooperative during the bankruptcy proceedings. He claimed that they actively participated in meetings aimed at liquidating the firm’s assets. According to Davies, Teneo’s portrayal of their lack of cooperation is merely an attempt to maximize value for the estate.
Hot Take: Davies’ Unapologetic Stance
Kyle Davies, co-founder of Three Arrows Capital, remains unapologetic for the collapse of his hedge fund and the loss of billions of dollars from investors. He has expressed no remorse and intends to avoid jail time by staying away from Singapore. Despite facing criticism and exaggerated claims from the liquidator, Davies believes his reputation is intact and that his success with OPNX proves his continued respect in the industry.
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