3AC co-founder refuses to recognise US court jurisdiction

The former head of the bankrupt hedge fund Three Arrows Capital (3AC), Kyle Davies, challenged the summons, arguing that he is a Singaporean citizen. The report is from Cointelegraph.

According to the filing, Davies cannot be held liable because at the time the case was filed he was no longer a US resident. The former co-founder of 3AC demanded to vacate any orders linking him to the hedge fund’s bankruptcy.

Attached to the filings was a copy of his renunciation of citizenship, dated December 15, 2020. He obtained a Singapore passport in 2021.

«To avoid doubt, I do not submit to and do not accept the jurisdiction of United States courts», — added he.

Davies was born and raised in the United States, but Singapore does not recognise dual citizenship, so he had to renounce his first. According to the former head of 3AC, he married a local resident in 2017, later had two children and obtained permanent residency.

The hearing on this matter is scheduled for August 8.

In June 2022, the Virgin Islands court ordered the liquidation of Three Arrows Capital. In July the company filed in the United States for bankruptcy protection.

In December, the 3AC liquidators recovered the assets belonging to the crypto hedge fund in Singapore banks, and also filed a petition to sell a $30 million superyacht. The total liabilities of the entity amount to $3.5 billion.

That same month the court approved the service of summonses for Zhu and Davies. The founders of 3AC were personally ordered to return $1.3 billion.

Back in April 2023, the former executives of the hedge fund launched the cryptocurrency exchange OPNX. In the spirit of “good karma” they promised to donate the platform’s proceeds to 3AC’s creditors.