3AC co-founder Kyle Davies remains unapologetic for the downfall of 3AC, asserting his focus on future endeavors rather than past failures.
Unapologetic Stance
Three Arrows Capital (3AC) founder Kyle Davies is not at all apologetic for the collapse of his crypto hedge fund. In an interview with Laura Shin for the Unchained Podcast, Davies exhibited a lack of remorse for 3AC’s collapse, dismissing it as a common occurrence in business.
With an accompanying laugh, Davies stated:
“Am I sorry for a company going bankrupt? No. Like, companies go bankrupt all the time.”
He emphasized the importance of focusing on future actions rather than dwelling on past mistakes. Davies viewed the criticism surrounding him and 3AC’s bankruptcy as inconsequential, particularly from those unaffected by it.
3AC’s Downfall and Legal Troubles
In 2022, 3AC stood as a significant player in the crypto industry. However, the hedge fund collapsed following Terra’s crash, plunging investor funds into oblivion. Founders Kyle Davies and Su Zhu faced legal repercussions and public scrutiny and were both sentenced to four months in prison.
Following Zhu’s arrest, Davies declined to surrender to Singaporean authorities, choosing to evade capture. Davies claimed that Zhu’s detention caught them both off guard, as they were allegedly unaware of the missed court date that resulted in their sentencing. Davies attributed the oversight to their lawyer’s failure to notify them of the court date.
Avoidance Tactics and Legal Proceedings
Davies made it clear he would not return to Singapore, where legal consequences awaited him. Expressing hope for a settlement with Singaporean authorities, Davies mentioned his whereabouts as “in Europe” and emphasized his intent to stay out of Singapore to avoid incarceration.
He said,
“I’m not going to go back immediately. But obviously, these things just resolve at some point. There are settlements. These are common kinds of tactics. So, I’ve learned where people try to pressure for this or pressure that settlement or whatever. But at the end of the day, all these things resolve.”
Despite their legal troubles, Davies and Zhu saw themselves as potential advisors for firms facing similar challenges.
OPNX Launch and Subsequent Closure
In April 2023, Davies and Zhu launched OPNX, a hybrid bankruptcy claims platform and crypto exchange. Davies touted the company’s launch as impressive and reaffirmed his stature within the crypto industry. However, by February 1, 2024, OPNX announced its abrupt closure, ceasing all operations by February 14.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
