Kyle Davis, one of the co-founders of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC), expressed his lack of remorse over the loss of billions in investor funds during a recent episode of the Unchained Podcast. Davis remained adamant that he harbored no regrets regarding the collapse of 3AC and brushed off criticism on social media regarding his past conduct. He humorously remarked that bankruptcies were commonplace in the business world and suggested that future ventures could learn from the experience.
Addressing inquiries about his future plans, Davis hinted at avoiding returning to Singapore to evade potential legal consequences, implying that he was currently residing in Europe. Although he previously claimed to live in Portugal in an interview with New York Magazine, his exact whereabouts remained undisclosed. Davis also discussed the establishment of OPNX, a hybrid bankruptcy claims platform and cryptocurrency exchange, with his co-founder Su Zhu in April 2023. Despite OPNX's subsequent closure in February 2024, Davis asserted his enduring respect within the crypto industry.
Davis refuted accusations of non-cooperation with Teneo, the liquidator responsible for 3AC's wind-up, characterizing them as exaggerated. He contended that Teneo's portrayal of him and Su Zhu as uncooperative hindered the recovery of additional funds. The duo had been served with subpoenas via Twitter messages in January 2023 for purportedly evading communication with relevant authorities and failing to cooperate satisfactorily with liquidators. Additionally, the British Virgin Islands Court froze Davis and Zhu's assets valued at $1.14 billion in December 2022.
Currently, Teneo endeavors to reclaim $1.3 billion directly from Zhu and Davis, alleging that they excessively leveraged investor funds post-3AC's collapse. This effort comes as Teneo estimates that creditors of 3AC are still owed approximately $3.3 billion in the aftermath of the hedge fund's 2022 downfall. Moreover, Singapore's central bank imposed a nine-year ban on Davis and Zhu in September 2023, citing alleged violations of the country's securities laws during their tenure at 3AC.
