Kyle Davies, the co-founder of bankrupt crypto hedge fund Three Arrows Capital (3AC), has provided documentation to the court claiming that he is a citizen of Singapore and not the United States. In a filing with the U.S. Bankruptcy Court for the Southern District of New York, Davies submitted notarized and Apostilled copies of the form renouncing his U.S. citizenship, which he applied for on December 15, 2020. He stated that he obtained citizenship in Singapore after receiving a passport in January 2021 and made it clear that he does not acknowledge the jurisdiction of U.S. courts.
According to court filings, Davies renounced his U.S. citizenship at the U.S. Embassy in Singapore, citing his intention to reside in the country long-term. He mentioned that he had married a Singaporean national in 2017, obtained permanent residency, and has two children in Singapore. As Singapore does not allow dual nationality, he made the decision to renounce his U.S. citizenship.
Davies’ filing comes in response to a subpoena issued to him and 3AC co-founder Su Zhu by the liquidators of 3AC. The subpoena aimed to gather information about the collapse of the crypto hedge fund. Both Davies and Zhu were subpoenaed on Twitter, now X, in January because their physical whereabouts were unknown at the time. However, parties involved in the case have argued that Davies should be held in contempt of court for ignoring the order. It is worth noting that Zhu, being a Singaporean national, would likely not be subject to the subpoena if residing outside the United States.
Davies’ filing states that he cannot be served with process as a non-party in the case because he has not been a U.S. citizen or resident since before the case began. He argues that the Court does not have personal jurisdiction over him and requests that the Service Order and Compel Order be vacated since they were based on the incorrect presumption that he is a U.S. citizen.
The whereabouts of both Zhu and Davies have been the subject of speculation and debate among crypto users since the bankruptcy filing of 3AC in July 2022. Lawyers have appeared on behalf of Davies in the bankruptcy court, but the revelation of his lack of U.S. citizenship could complicate the legal proceedings. A hearing to discuss the matter is scheduled for August 8.
The liquidators of 3AC are seeking to recover approximately $1.3 billion in funds from Zhu and Davies, as the firm reportedly owes creditors $3.5 billion. In the midst of online criticism about the events leading to the collapse of 3AC, Zhu and Davies launched a platform called Open Exchange for trading claims against bankrupt cryptocurrency firms. Sotheby’s also auctioned off several pieces from a non-fungible token collection that was previously owned by the 3AC founders.
In conclusion, Kyle Davies, the co-founder of bankrupt crypto hedge fund Three Arrows Capital, has submitted documentation to the court confirming his citizenship in Singapore and renunciation of his U.S. citizenship. This development could have implications for the legal proceedings regarding the collapse of 3AC and the efforts to recover funds from Davies and Su Zhu.
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