In the bankruptcy case of Three Arrows Capital (3AC) – a crypto hedge fund that ceased operations -a US judge has rejected a request to impose sanctions on co-founder Kyle Davies due to his renunciation of American Citizenship and residence outside of the US. US Bankruptcy Judge Martin Glenn commented in February that compelling compliance outside the US is done according to feasible federal laws, and on August 1 Davies submitted personal citizenship documents to the Court confirming his 2018 US renunciation and his permanent Singaporean residency. Documents later released by his representatives on August 11 also included the Singapore residence status of Su Zhu, Davies’ 3AC co-founder.
Due to non-US jurisdiction, the Court has been unable to deliver a subpoena, which was previously issued to Davies last January using X. In a following hearing, Judge Glenn commented that foreign representatives might have the ability to force Davies’ attendance via Singaporean legislature. Mr. Davies had come into contact with Su Zhu this past December 2017 through their mutual connections, as Zhu is a resident of Singapore which does not deny multiple citizenship. Zhu’s address details in Singapore were subsequently stated by Davies’ legal representatives at the Court and provide backing to his claims regarding residency change.
The motion by creditors to hold Davies in contempt of Court was thus rejected, and further proceedings related to Three Arrows Capital’s liquidation have sought answers regarding the defunct hedge fund’s .
