3AC Co-Founder Calls for Renunciation of US Citizenship and Rejects Jurisdiction of Bankruptcy Court
Since Singapore does not allow dual citizenship, Kyle Davies, co-founder of 3AC, said he decided to give up his US citizenship after getting married and gaining permanent residency.
Kyle Davies is the co-founder and former CEO of Three Arrows Capital, a bankrupt crypto hedge fund. He has submitted documents to the court to prove that he is a full citizen of Singapore.
Davies filed notarized and apostille copies of his form requesting renunciation of U.S. citizenship on December 15, 2020 with the U.S. Bankruptcy Court for the Southern District of New York on August 1 . He claimed he obtained Singaporean citizenship after a passport was issued in January 2021. He did not accept the jurisdiction of the US courts.
Court documents showed Davies renounced citizenship at the US Embassy in Singapore on the grounds that he wished to remain in Singapore for an extended period. He claimed to have married a Singaporean citizen in 2017, obtained permanent residency and had two children there. Singapore does not allow dual citizenship, so he renounced his US citizenship.
Notarized and apostilled documentation of Kyle Davies renouncing his US citizenship in December 2020. Source: US Bankruptcy Court, Southern District of New York.
Davies’ filing follows a subpoena issued by 3AC liquidators seeking information about the collapse of the crypto hedge fund. Davies and 3AC founder Su Zhu, who were both subpoenaed via Twitter (now X) in January because their physical whereabouts were unknown, have been accused by the parties of contempt for failing to comply with the order. Zhu is a Singaporean citizen and would likely not be subject to a subpoena if she lived outside the United States.
According to an August 1 filing, “Davies cannot validly be represented as an independent in this matter because he has not been a resident or citizen of the United States since the filing of the case.” The court does not have personal jurisdiction as Davies does not was legally served. The Service Order and the Compel Orders were based on the erroneous assumption that Davies was a US citizen and should therefore be overturned.
Crypto users affected by the crypto market crash have speculated and debated the whereabouts of Zhu and Davies after 3AC filed for bankruptcy in July 2022. Davies was represented in bankruptcy court by attorneys, but his lack of US citizenship meant that the trial could be complicated. On August 8, the bankruptcy court will hold a hearing to consider the matter.
3AC’s liquidators want to recover approximately $1.3 billion from Zhu and Davies. The company reportedly owes its creditors $3.5 billion. In response to internet anger over the events leading to the collapse of 3AC, Zhu & Davies launched Open Exchange, a platform to trade claims against bankrupt crypto companies. Sotheby’s also sold several pieces of a collection of irreplaceable tokens that once belonged to the founders of 3AC.
