<p>Kyle Davies, the Co-Founder of the failed Singaporean crypto hedge fund Three Arrows Capital (3AC), has asserted that he is solely a citizen of Singapore and not of the United States.</p><h2 id="header-0">Evading pursuit of damages</h2><p>The assertion may have relevance as it may mean that Davies can evade actions taken against him in a US court on the basis of a lack of jurisdiction. In a recent<a href="https://decrypt.co/150890/three-arrows-capital-co-founder-kyle-davies-rejects-us-court-jurisdiction" rel="noopener noreferrer nofollow"> filing</a> with the US Bankruptcy Court for the Southern District of New York (SDNY), Davies presented documents demonstrating that he had renounced his US citizenship in December 2020. He emphasized that he obtained citizenship in Singapore after being issued a passport in early 2021 and that he does not subject himself to the jurisdiction of US courts.</p><h2 id="header-1">$3.5 billion owed</h2><p>In June it<a href="https://medium.com/&#64;coinness.gl/3ac-liquidators-pursue-1-3-billion-from-founders-da3ac2f2f6b6" rel="noopener noreferrer nofollow"> emerged</a> that liquidators appointed for 3AC were seeking to recover $1.3 billion from the fund’s co-founders, Davies and Su Zhu. The firm reportedly owes creditors a staggering $3.5 billion.</p><p>In the midst of public criticism surrounding the events leading to 3AC’s collapse, Zhu and Davies<a href="https://medium.com/&#64;coinness.gl/opnx-confirms-significant-vc-backing-d10b4214383c" rel="noopener noreferrer nofollow"> launched</a> a platform called Open Exchange (OPNX), allowing trading claims against bankrupt crypto firms. Despite a deficit of goodwill for the duo in the crypto sector, they have been putting all their energies into the new venture.</p><p>Last month, they<a href="https://medium.com/&#64;coinness.gl/3ac-founders-vow-to-donate-future-earnings-e0d2f2cc8327" rel="noopener noreferrer nofollow"> outlined</a> that they would donate future earnings from OPNX to 3AC creditors. It’s difficult to reconcile that claim when with this action, Davies is trying to evade contributing to creditors via the 3AC bankruptcy process and this legal action taken by the liquidator.</p><h2 id="header-2">Renounced citizenship</h2><p>According to court documents, Davies officially renounced his US citizenship at the US Embassy in Singapore, citing his decision to reside in the country on a long-term basis. He revealed that he got married to a Singaporean national in 2017 and subsequently gained permanent residency in Singapore. Because Singapore does not permit dual nationality, Davies chose to renounce his US citizenship to establish himself fully as a Singaporean citizen.</p><p>The submission of these documents came after 3AC’s liquidators requested a subpoena to gather information on the crypto hedge fund’s collapse. Both Kyle Davies and Zhu, were subpoenaed on Twitter, as their whereabouts were unknown. However, while Zhu, being a Singaporean national, might not be subject to the subpoena while residing outside the United States, Davies’ refusal to comply with the order led to discussions about holding him in contempt of court.</p><p>In response to the subpoena controversy, Davies’ legal representatives claimed that he cannot be validly served with process as a non-party in the case, as he has not been a US citizen or resident since well before the case was initiated. They stated that the court lacks personal jurisdiction over him due to his renunciation of US citizenship. Accordingly, they requested that the Service Order and Compel Order, which were based on the assumption that Davies was a US citizen, be vacated.</p>

3AC Co-Founder Disputes US Jurisdiction Citing Singaporean Citizenship

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