Hedge Fund Co-Founder Shows No Remorse For Crimes

After reportedly declaring bankruptcy and disappearing with all his investors’ money, Three Arrows Capital (3AC) co-founder Kyle Davies went on the run.

The Singapore-based investment firm oversaw around $18 billion worth of cryptocurrency assets during its height.

The United States, Singapore, and the British Virgin Islands all demanded that the corporation sell its assets in 2022 after it declared bankruptcy and failed to reimburse investors. Davies and his business associate Su Zhu escaped and went into hiding. In September, Zhu was apprehended at Changi Airport in Singapore and given a four-month prison term.

Davies and Zhu’s business was primarily responsible for the fall of cryptocurrencies in 2022, according to FTX founder Sam Bankman-Fried. Whether or not Davies will go back to the US and the consequences of his doing so are unknown. He is believed to be hiding away and has skipped his court appearance in Singapore. While nobody knows where Davies is, rumors have circulated that he is most likely in Portugal.

Following his renunciation of US citizenship, Davies was granted citizenship of Singapore. He gave New York Magazine an interview in February in which he said he was in Portugal but wouldn’t reveal his precise location. He stated he had no reason to assume he would suffer consequences for returning to the US to meet his family.

Also discussed was the demise of Davies’s OPNX business, which he had established in Dubai in April 2023. Dubai’s crypto authority legally censured OPNX for running an unlicensed exchange for a considerable amount of time following its establishment and shutdown in February. Notable rivals FTX and Binance went under around the same period as 3AC and OPNX failed.

At his sentencing on March 28, FTX founder Sam Bankman-Fried, who was found guilty of one of the biggest financial frauds in history in 2023, will face forty to fifty years in prison.

In November, Binance CEO Changpeng Zhao pled guilty to anti-money laundering crimes, which led to his forced resignation. He is expected to be sentenced on April 30.