Kyle Davies, co-founder of crypto hedge fund Three Arrows Capital (3AC), has denied bankruptcy court jurisdiction, claiming he renounced his US citizenship.
Davies stated that he renounced his US citizenship after marrying a citizen residing in Singapore and obtaining permanent residency. She stated that she preferred to renounce her US citizenship because Singapore does not allow dual citizenship.
US citizenship exit from Three Arrows Capital co-founder
Davies’ filing came at the request of 3AC’s liquidators and is intended to gather information on the collapse of the crypto hedge fund. However, along with 3AC co-founder Su Zhu, Davies’ physical location was unknown, making it difficult to sue. Documentation relating to the case states that since Davies is not a US citizen or resident, the court has no personal jurisdiction over him.
The liquidators behind 3AC are trying to recover nearly $1.3 billion in funds from Zhu and Davies, as the company reportedly owes $3.5 billion to creditors. Following the crash, Zhu and Davies launched a platform called Open Exchange for trading claims against bankrupt crypto firms. In addition, Sotheby’s has auctioned off several pieces from an unparalleled collection of tokens previously owned by the 3AC founders. 3AC’s bankruptcy case will hold a hearing on the matter on August 8.
