In a candid interview on the Unchained Podcast, Kyle Davies, co-founder of the now-defunct Three Arrows Capital (3AC), expressed a lack of remorse over the hedge fund’s bankruptcy, sparking controversy in the crypto community.
Davies addressed public sentiment regarding the bankruptcy, stating, “Am I sorry for a company going bankrupt? No, like companies go bankrupt, almost every company goes bankrupt, right?” He emphasized the importance of learning from failures and using experiences to contribute positively in the future.
Founded in 2012 by Davies and Su Zhu, Three Arrows Capital faced significant losses during the mid-2022 crypto market downturn, leading to insolvency proceedings across multiple jurisdictions, including the British Virgin Islands, Singapore, and the United States.
Zhu’s arrest at the Singapore airport in September 2023 for allegedly failing to aid in 3AC’s liquidation resulted in a four-month prison sentence. Davies clarified that neither he nor Zhu were aware of a court date, which led to their contempt of court charges.“Maybe we should (sack our lawyers for not informing us about the court date),” Davies said when asked whether he had fired his lawyers.
Meanwhile, in April 2023, Davies and Zhu established OPNX, a bankruptcy claims exchange, during their stay in Dubai. However, the venture faced regulatory backlash and was formally reprimanded for operating as an unregulated exchange. By February 2024, OPNX was shut down, only to seemingly reappear as $LAMB amid the current crypto market bull run.
