Collapsed crypto hedge fund Three Arrows Capital’s co-founder Kyle Davies said he renounced his American citizenship and therefore does not need to answer to the U.S. courts.
In Tuesday court documents, Davies said that he successfully became a permanent resident of Singapore in 2017.
As Singapore doesn’t allow dual citizenships, Davies renounced his American one when he got married, the documents read.
“For the avoidance of doubt, I am not subjecting myself to, or accepting the jurisdiction of, the Courts in the United States,” a statutory declaration filed today said.
The Singapore-based firm invested client money in new crypto ventures but was hit hard by the collapse of crypto project Terra in May 2022.
3AC’s liquidators last month demanded $1.3 billion from its co-founders Davies and Su Zhu.
They claim that the co-founders continued taking on leverage in May and June of 2022 despite the firm being “already insolvent,” and that this increased the total losses.
Still, the liquidators have had some success. The team liquidating 3AC’s assets has already secured $35.6 million cash held in bank accounts, a $30 million yacht, and certain NFTs. But they’ve stressed that those assets represent a small portion of the $3.5 billion hole in the company’s balance sheet when it filed for bankruptcy.
3AC is one of many crypto companies that got hit hard when the price of Bitcoin started dropping last year, leading UST, the third-largest stablecoin by market cap, to lose its peg.
This led to the collapse of Terra—a crypto project many companies had exposure to.
Court documents previously claimed that Zhu Davies they have largely ignored liquidators and have refused to cooperate.
Court-appointed liquidator Teneo also said it started to take control of assets such as crypto and a yacht back in December.