3AC co-founder rejects jurisdiction of bankruptcy court, claiming he renounced US citizenship

Kyle Davies, the co-founder of bankrupt crypto hedge money Three Arrows Capital (3AC), has submitted documentation to tribunal claiming helium is afloat a national of Singapore and not the United States.

In an Aug. 1 filing with U.S. Bankruptcy Court for the Southern District of New York, Davies provided notarized and Apostilled copies of the signifier applying for the renunciation of his U.S. citizenship connected Dec. 15, 2020. He claimed to person received citizenship to Singapore pursuing the issuance of a passport successful January 2021 and was not “subjecting [him]self to, oregon accepting the jurisdiction of, the Courts successful the United States.”

Court filings showed Davies renounced his citizenship astatine the U.S. Embassy successful Singapore, citing his determination to unrecorded successful the state long-term. He said helium got joined successful 2017 to a Singaporean national, gained imperishable residency, and has 2 children successful the country. As Singapore does not let dual nationality, helium chose to renounce his U.S. citizenship.

Notarized and Apostilled documentation of Kyle Davies renouncing his U.S. citizenship successful December 2020. Source: U.S. Bankruptcy Court for the Southern District of New York

The filing from Davies followed a subpoena issued astatine the petition of 3AC liquidators aimed astatine gaining accusation connected the illness of the crypto hedge fund. Both Davies and 3AC co-founder Su Zhu were subpoenaed connected Twitter — present X — successful January owed to their carnal whereabouts being unknown, but parties person argued Davies should beryllium held successful contempt of tribunal aft helium ignored the order. Zhu, a Singaporean national, would apt not beryllium taxable to the subpoena if residing extracurricular the United States.

“Davies has not been, and cannot be, validly served with process arsenic a non-party successful this lawsuit due to the fact that helium has not been a United States national oregon nonmigratory since good earlier this lawsuit was commenced,” said an Aug. 1 filing. “Since Davies has not been validly served, the Court does not person idiosyncratic jurisdiction implicit him. The Service Order and Compel Order were premised connected the incorrect presumption that Davies is simply a U.S. citizen, and truthful they should beryllium vacated.”

Related: Kyle Davies to donate aboriginal OPNX net to 3AC creditors for ‘karma’

The whereabouts of some Zhu and Davies pursuing the bankruptcy filing for 3AC successful July 2022 has been the taxable of wide speculation and statement among crypto users affected by the marketplace crash. Lawyers person appeared earlier the bankruptcy tribunal connected Davies’ behalf, but the revelation of his deficiency of U.S. citizenship could complicate ineligible proceedings. The bankruptcy tribunal volition clasp a proceeding connected Aug. 8 to sermon the matter.

Liquidators down 3AC are seeking to recover astir $1.3 cardinal successful funds from Zhu and Davies, with the steadfast reportedly owing creditors $3.5 billion. Amid online ire surrounding the events starring to the illness of 3AC, Zhu and Davies launched a platform for trading claims against bankrupt crypto firms called Open Exchange. Sotheby’s has besides auctioned disconnected respective pieces from a nonfungible token postulation formerly owned by the 3AC founders.

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