3AC’s Kyle Davies Avoids Huge Fine For Denying US Citizenship

Key Points:

  • 3AC co-founder Kyle Davies was exempted from the hefty fines associated with the subpoenas by being introduced to liquidators.
  • It is known that it was because Davies was not a US citizen then.
  • Before that, the liquidators wanted the judge to issue a fine of $10,000 per day until he responded.
According to Bloomberg News, Kyle Davies, co-founder of the soon-to-be bankrupt crypto hedge fund Three Arrows Capital (3AC), is exempt from paying a hefty fine related to a subpoena for relinquishing US citizenship.
3AC's Kyle Davies Avoids Huge Fine For Denying US Citizenship

Judge Martin Glenn ruled Friday that Kyle Davies was not a US citizen at the time of the New York bankruptcy court subpoena and therefore did not have to pay the fine. The judge said he did not have the authority to tweet the warrant.

3AC’s liquidators wanted the judge to hold Davis in contempt of court and fine him $10,000 a day until he responds to the subpoena or turns over the documents.

The liquidators tried to send Davies summons via Twitter because they weren’t sure where Davies currently lives. Davies’ attorneys filed documents earlier this month proving he renounced his US citizenship and became a Singapore citizen by the end of 2020.

Previously, on August 1, Davies’ lawyer had submitted evidence that he had applied to renounce his US citizenship in December 2020 and had become a Singapore citizen after marrying a Singaporean citizen. Singapore does not allow dual citizenship. This filing is in response to 3AC’s motion of contempt for the US bankruptcy case for lack of response to an online search warrant.

Founders Su Zhu and Kyle Davies went missing after the collapse of 3AC in July 2022. However, they suddenly returned in February of this year and announced on Twitter the establishment of exchange transactions under the name Open Exchange or OPNX. The project received a lot of controversy because of the reputation of the founders, whose purpose was “wrong from the start.”

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