3AC founder Kyle Davies not sorry for his actions, intends to avoid prison

Kyle Davies, the founder of bankrupt Three Arrows Capital (3AC), was recently interviewed on the cryptocurrency podcast Unchained. During the interview, Davies explained how he intends to avoid his prison sentence in Singapore, how he still believes his actions were not fraudulent, and why “Uncle Kyle’s Chicken restaurant” is still unlaunched. 

Davies claimed the pending Singaporean prison sentence was a surprise, blamed his and Su Zhu‘s lawyers for not adequately reminding them about the court date that they missed, and also said that “this is not my full-time job.” Despite their lawyers apparently being responsible for their prison sentences, Davies noted that he has not fired his lawyers, though he did muse that, “maybe we should.”

Davies also noted that he does not intend to return to Singapore for as long as the prison sentence is waiting for him. Davies has also not returned to the United States since the collapse of Three Arrows Capital, but claims that he could if he wanted.

According to Davies, the only regulatory issue that Three Arrows has had to face, comes from Singapore. Davies also claimed that the lack of further regulatory action is de facto evidence of an absence of fraudulent activity from him and his business partners. 

Davies challenged those who claim that the financial status of Three Arrows Capital was misrepresented to “prove it” and further claimed that the 3AC due diligence process was “always done per what would make sense at that time,” although he admitted that it was not “really strict.”

When asked about a payment made in the final hours of Three Arrows Capital to a related entity that liquidators have been unable to track that people have theorized was a payment to the “mob,” Davies denied any association, though he could not describe where the funds went, and then launched into a tirade against the “lamestream” media in which he discussed how important “free speech” was.

Despite his dedication to free speech, Davies-advised OPNX filed a defamation lawsuit against someone who criticized the company, and the exchange even issued a ‘Justice Token’ to pay out proceeds of settlements from these suits. 

Davies insists that he did not trade while Three Arrows Capital was insolvent.

Throughout the interview, Davies railed against statements the liquidators have made, often describing them as “posturing” or “bluster” and claiming that both sides are “playing chess.” Davies expressed regret that Three Arrows did not come up with an alternative to bankruptcy, referencing the BFX token that was issued by Bitfinex before confusingly describing it as a “brother or sister firm.”

Read more: 3AC founder Su Zhu says prison ‘good for you’ after four-month stay

Kyle Davies activities since the collapse

Despite not being able to return to Singapore and yet to return to the United States, Davies has found other places where he continues to focus on himself, making sure to note how important it was for him to go to Bali: “If you blow up, go into full liquidation, you go to Bali.”

Davies has remained very active since the collapse of Three Arrows Capital, including “advising” OPNX, an exchange that was at times intended to trade “fungible” bankruptcy claims and was also intended to be a massive cryptocurrency exchange. OPNX was started with CoinFLEX, another bankrupt cryptocurrency exchange.

CoinFlex creditors have claimed that these activities have drained assets from the exchange’s estate. Laura Shin, the interviewer, referenced a photoshoot including Davies, Zhu, and Mark Lamb from CoinFlex, which creditors have accused of costing the estate almost $32,000, a fact that Davies claimed was untrue.

When asked about claims that he received $25,000 per month from the CoinFLEX estate, Davies denied the source, but not the amount, stating, “I was a billionaire before.”

Davies also suggested that OPNX’s missteps are mainly due to CEO Leslie Lamb not listening to his “advice.”

Davies and Zhu are currently advisors to a token project that he describes as a “gamified derivatives platform” that does not disclose its founders or funders. During the interview, Davies was unwilling to disclose that information, claiming that privacy is a fundamental cryptocurrency belief.

During the course of the interview, Davies never once apologized or indicated remorse for his behavior, insisting that on a long enough timeline, “every company goes bankrupt.”

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