Three Arrows Capital's Kyle Davies Declares Singaporean Residency to Avoid US Courts
Kyle Davies, co-founder of now-defunct crypto hedge fund Three Arrows Capital, has claimed that US courts don't have jurisdiction over him as he has renounced his American citizenship.
According to court documents filed on Tuesday, Davies became a permanent resident of Singapore in 2017 and renounced his American citizenship when he got married due to Singapore's policy of not allowing dual citizenship.
“For the avoidance of doubt, I am not subjecting myself to, or accepting the jurisdiction of, the Courts in the United States,” he said.
In an attempt to strengthen his case, Davies included a copy of his Singapore passport in the court filings, indicating that he had indeed renounced his American citizenship.
Three Arrows Capital went bankrupt last year following a court order in the British Virgin Islands to liquidate the firm.
The Singapore-based hedge fund had invested client money in new crypto ventures but suffered significant losses due to the collapse of the Terra ecosystem in May 2022.
Last month, 3AC's liquidators asked $1.3 billion from Davies and co-founder Su Zhu, alleging that the co-founders continued taking on leverage despite the firm being insolvent.
Meanwhile, the liquidators have managed to secure some assets, including $35.6 million cash from bank accounts, a $30 million yacht, and more than $10 million from certain non-fungible tokens (NFTs).
However, these assets only account for a fraction of the $3.5 billion deficit in the company's balance sheet at the time of bankruptcy.
As reported, the Three Arrows Capital founers have been living the high life in Bali after their company's failure last year.
According to a recent report, the founders spent the summer in Bali, painting in cafes, reading Hemingway
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