Three Arrows Capital Co-Founder Kyle Davies: No Pending Lawsuits or Regulatory Action

Davies spoke to CoinDesk from an office in Dubai.

AccessTimeIconMar 13, 2023 at 4:56 p.m. UTC
Updated May 9, 2023 at 4:10 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Kyle Davies, co-founder of defunct hedge fund Three Arrows Capital, claimed there are no pending lawsuits or regulatory action against him at the current time.

Three Arrows Capital met its demise as the crypto markets tumbled amid the implosion of the $60 billion Terra ecosystem last May. The hedge fund filed for bankruptcy two months later. In October, it was reported the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) were probing the Singapore-based fund over misleading investors about its balance sheet.

  • DCG Reaches In-Principle Deal With Genesis Creditors
    02:26
    DCG Reaches In-Principle Deal With Genesis Creditors
  • Crypto Custodian Prime Trust Files for Bankruptcy
    02:06
    Crypto Custodian Prime Trust Files for Bankruptcy
  • Celsius Can Start Converting Altcoins to Bitcoin, Ether as of July 1, Judge Says
    04:58
    Celsius Can Start Converting Altcoins to Bitcoin, Ether as of July 1, Judge Says
  • FTX EU Starts Process of Allowing Customers to Withdraw Funds
    07:24
    FTX EU Starts Process of Allowing Customers to Withdraw Funds
  • Three Arrows in December was reported to have more than $3 billion of liabilities against assets of just $1 billion.

    While acknowledging the anger surrounding his fund's collapse, Davies claimed the regulatory and legal heat has receded.

    "If you think about, why are people angry? It has nothing to do with me actually," Davies told CoinDesk from an office in Dubai. "They're angry that the market went down. In terms of us, we have no regulatory action anywhere, no lawsuits at all."

    "There's just nothing, so I know they're clearly not mad at anything. They're mad because the supercycle didn't happen maybe, I don't know. Something like that."

    The whereabouts of Davies has been a key question since the demise of Three Arrows Capital. In November Davies told CNBC that he was living in Bali, Indonesia. Neither Indonesia or the United Arab Emirates have extradition treaties with the United States.

    Davies recently launched the Open Exchange (OPNX), a platform that allows users to trade bankruptcy claims and use claims as collateral to trade crypto derivatives.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Oliver Knight

    Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.