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Kyle Davies ‘Not Sorry’ for 3AC Collapse, Plans to Avoid Jail

Kyle Davies, co-founder of Three Arrows Capital, shows little remorse for the collapse of 3AC and plans to avoid jail time, expressing his intentions on a podcast.

Kyle Davies, co-founder of Three Arrows Capital (3AC), appeared on a podcast where he showed little remorse for the collapse of his firm and expressed plans to avoid spending time in a Singaporean prison.

During the Unchained Podcast episode on March 19, Davies expressed no regret for the loss of billions of investor funds, stating, “Am I sorry for a company going bankrupt? No. Like, companies go bankrupt all the time,” and laughed off the situation.

When asked about his future plans, Davies remarked that perhaps he could advise the next Three Arrows on how to handle bankruptcy better. He also stated his intentions to avoid returning to Singapore to evade potential jail time, claiming to be currently in Europe, though he previously told New York Magazine that he was residing in Portugal.

Davies and Zhu, his co-founder, had launched OPNX in April 2023, a hybrid bankruptcy claims platform and crypto exchange. Despite OPNX shutting down its operations and closing completely by February 14, Davies described the launch of the company as “very impressive” and maintained that he is still respected within the crypto industry.

Regarding allegations of non-cooperation with Teneo, the firm in charge of 3AC’s liquidation, Davies claimed they were exaggerated, suggesting that it was the liquidator’s job to make it seem as though they were uncooperative to recover more funds.

In December 2021, a British Virgin Islands court froze $1.14 billion worth of Davies and Zhu’s assets, and Teneo estimates that 3AC creditors are still owed roughly $3.3 billion following the hedge fund’s collapse in 2022.

Teneo is seeking to recover $1.3 billion directly from Zhu and Davies, accusing them of taking on significant leverage with investor funds after 3AC became insolvent. In September 2023, Singapore’s central bank issued nine-year prohibition orders to Davies and Zhu over alleged violations of the country’s securities laws during their tenure at 3AC.