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Kyle Davies
Co-Founder; Three Arrows Capital (3AC)
Co-founded cryptocurrency hedge fund Three Arrows Capital that collapsed owing $3.5 billion; fled to avoid legal proceedings
Overview
Kyle Davies co-founded Three Arrows Capital (3AC); a Singapore-based cryptocurrency hedge fund; with Su Zhu in 2012. At its peak; 3AC managed approximately $10 billion in assets. The fund collapsed spectacularly in June 2022 after the implosion of the Terra/Luna stablecoin ecosystem; in which 3AC had massive positions. Three Arrows Capital filed for bankruptcy in the British Virgin Islands on June 29, 2022; owing creditors approximately $3.5 billion. Court documents revealed that Davies and Zhu had made enormous leveraged bets using borrowed funds from across the crypto industry; and their collapse triggered a cascading liquidation crisis that wiped out numerous other crypto firms including Voyager Digital and Celsius Network; causing billions in losses for retail investors. Liquidators found that Davies and Zhu had moved assets prior to the bankruptcy filing; withdrawing funds and transferring assets including luxury properties. BVI courts ordered Davies and Zhu arrested for contempt after they failed to cooperate with liquidators. Both fled Singapore; Davies had not been located by authorities for months. Davies later surfaced briefly claiming to be launching a new exchange from an undisclosed location.
Key Affiliations
Controversies & Concerns
Three Arrows Capital collapsed in June 2022 owing approximately $3.5 billion to creditors; using massive leverage on crypto positions
Collapse triggered cascading failures across crypto industry; destroying Voyager Digital; Celsius Network; and others; costing retail investors billions
Court documents showed assets were moved prior to bankruptcy filing; including withdrawals and luxury property transfers
Ordered arrested for contempt by BVI courts for failing to cooperate with bankruptcy liquidators; fled Singapore to unknown location
Resurfaced attempting to launch a new crypto exchange despite outstanding arrest warrants and billions in unpaid debts
Related Investigations (1)
Criminal Charges & Violations
1 documented violations
BVI Insolvency ActContempt of court; ordered arrested for failing to cooperate with liquidators(Contempt)
Known Associates & Connections
Su Zhu
Co-founder of Three Arrows Capital; arrested in Singapore in September 2023
Sources & Documentation
2 documented sources from official records, investigations, and reports
Personal Information
- Born
- Unknown
- Birthplace
- Unknown
Education
- •Columbia University
Key Timeline
2012
Co-founded Three Arrows Capital with Su Zhu
2021
3AC assets under management peak at approximately $10 billion
May 2022
Terra/Luna stablecoin collapse wipes out $40 billion; 3AC had massive exposure
June 2022
3AC faces margin calls it cannot meet; defaults on loans
June 29, 2022
3AC files for bankruptcy in the British Virgin Islands; owes $3.5 billion
July 2022
Liquidators appointed; Davies and Zhu fail to cooperate
September 2022
BVI court orders arrest of Davies and Zhu for contempt
2023
Su Zhu arrested at Changi Airport in Singapore; Davies remains at large