In a recent episode of the Unchained Podcast, Kyle Davies, the co-founder of the collapsed Three Arrows Capital (3AC), firmly stated that he harbors no apologies for the crypto hedge fund's bankruptcy.
3AC's journey from its foundation in 2012 to its eventual downfall encapsulates the volatile nature of the crypto industry. The firm's co-founders, Kyle Davies and Su Zhu, encountered a stark reversal of fortune when the 2022 crypto market crash triggered insolvency proceedings.
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He justifies feeling no remorse by saying that the case of 3AC was not uncommon, as "companies go bankrupt all the time."
He also expressed a forward-looking perspective, advocating for the value that can still be contributed despite past setbacks:
At a minimum, we can even tell the next Three Arrows how to do things better when they go bankrupt.
Davies also revealed that, for the moment, he plans to remain outside Singapore, attempting to avoid the legal problems Zhu had to face in the country in October 2023. He was arrested and subsequently sentenced to four months in prison for contempt of court, a penalty from which he was released early for good behavior.
Davies argued that the contempt of court was unintentional, as neither he nor his colleague were aware of a court date.
A month before the arrest, Singaporean authorities imposed a nine-year ban on Davies and Zhu, prohibiting them from participating in the country's regulated financial services industry.
The narrative of 3AC's aftermath also includes the founders' establishment of OPNX, a bankruptcy claims exchange, which was subsequently under scrutiny by Dubai's crypto regulator for violating several market regulations.
Despite its initial shutdown, the platform has seen a revival amid the crypto market's current bull run. It is now under the new guise of $LAMB, a token purportedly embodying the principles of "Sacrifice, Servant Leadership, and the Kingdom of God being within you."
This intricate web of financial, legal, and regulatory challenges encapsulates the tumultuous path of Three Arrows Capital and its founders, underscoring the unpredictable and often precarious nature of the cryptocurrency sector.
