Crypto Hedge Fund Bankruptcy: 3AC Co-Founder ‘Not Sorry’

Kyle Davies, the co-founder of the now-bankrupt Three Arrows Capital (3AC), recently joined the Unchained Podcast to discuss the crypto community’s opinion of him, why he isn’t sorry that the crypto hedge fund went bankrupt two years ago, and his prison sentence.

Where On Earth Is Kyle Davies?

In 2022, 3AC was one of the giants in the industry. The now-failed crypto hedge fund saw its collapse shortly after Terra’s crash, which sent the whole crypto market into turmoil.

Since then, Kyle Davies and Su Zhu, 3AC’s founders, have faced legal repercussions and massive public scrutiny. Both founders were sentenced to four months of imprisonment after failing to cooperate with authorities in the 3AC’s bankruptcy investigation.

After Zhu’s apprehension, Davies refused to turn himself in to Singaporean authorities, and he remained at large. In an interview with Laura Shin for the Unchained Podcast, the co-founder shed some light on his decision to avoid the four-month sentence.

According to Davies, Su Zhu’s detention took both by surprise as allegedly neither of them knew about the missed court date that led to their sentencing. Their lawyer is seemingly at fault for not informing them of the court date.

Moreover, Zhu’s experience in prison was not what Davies expected it to be, as he took the time to “meditate and help others.” Despite not being like “in the movies,” the fugitive co-founder doesn’t plan to return to Singapore soon unless authorities “remove the contempt.”

However, Davies is hopeful that a settlement can be reached with Singapore authorities:

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.

The 3AC’s co-founder also believes that his entrance to the US shouldn’t be a problem despite his resigning from his American citizenship. Nevertheless, Davies didn’t disclose his current location beyond affirming that he was somewhere in Europe. He considers that giving his exact location “would be problematic.”

No Apologies For The Crypto Community

During the interview, Shin asked about the crypto community’s opinion regarding Davies’s lack of visible “remorse.” The co-founder addressed his “reputation,” refusing to apologize for the crypto hedge fund’s collapse:

Am I sorry for a company going bankrupt? No, like companies go bankrupt, almost every company goes bankrupt, right?

Davies stated that instead of focusing on the mistakes already made, what matters is “how you build or what you do about it.” He claims that most people who had something negative to say about him or 3AC’s bankruptcy were “largely people who are not affected.”

Nevertheless, Zhu and Davies could serve as an example and as advisors for the firms that face similar challenges that 3AC did, according to Davies:

We’re definitely trying our best. We can add value in various ways. At a minimum, we can even tell the next Three Arrows how to do things better when they go bankrupt.

The total crypto market cap sits at $2.3 trillion in the 1-day chart. Source: TOTAL on Trading.view.com 

Featured Image from Unsplash.com, Chart from TradingView.com