3AC CO-FOUNDER AVOIDS CONTEMPT CHARGES FOLLOWING EVIDENCE OF SINGAPOREAN CITIZENSHIP

The tumultuous saga surrounding the collapse of crypto hedge fund Three Arrows Capital (3AC) continues to unfold, with the latest development seeing co-founder Kyle Davies avoid contempt of court charges. A judge in the bankruptcy case of defunct crypto hedge fund Three Arrows Capital (3AC) has denied a motion that would have held co-founder Kyle Davies in contempt of court and imposed sanctions. In an Aug. 11 filing with the United States Bankruptcy Court for the Southern District of New York, Judge Martin Glenn said [ ]This outcome hinges on evidence presented by Davies' legal team demonstrating his acquisition of Singaporean citizenship and subsequent renunciation of his U.S. citizenship.The decision, delivered by Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York, highlights the complexities of international law and jurisdiction in the wake of 3AC's dramatic downfall. On Aug. 1, lawyers for Davies filed evidence that he had applied to renounce his U.S. citizenship in December 2025 and had become a citizen of Singapore following his marriage to a nationalThe judge stated that rulings on motions regarding a subpoena issued to Davies were considered without the knowledge that the 3AC co-founder was a non-U.S. citizen residing outside the country.This raises fundamental questions about the accountability of individuals involved in the cryptocurrency industry when their actions span multiple jurisdictions and nationalities. In an Aug. 11 filing with the United States Bankruptcy Court for the Southern District of New York, Judge Martin Glenn said rulings on motions regarding a subpoena issued to Davies via X formerly Twitter were considered without the knowledge the 3AC co-founder was a non-U.S. citizen residing outside the country.What are the implications of this decision for creditors seeking to recover assets? 3AC co-founder avoids contempt charges following evidence of Singaporean citizenship Grand Master Asset Management Bankruptcy Court Law Regulation AugHow will the bankruptcy proceedings proceed given the limited access to key figures?And what does this case reveal about the challenges of regulating the rapidly evolving landscape of digital assets?These are some of the questions that this ruling brings to the forefront.

The Motion for Contempt and Davies' Citizenship Status

The initial motion sought to hold Kyle Davies in contempt of court, a serious charge that could have resulted in sanctions.However, Davies' lawyers successfully argued that his current citizenship status placed him outside the court's jurisdiction. 3AC co-founder Su Zhu, who was also issued a summons on X, is a Singaporean national and not subject to the subpoena, as he resides outside the United States. Both Zhu's and Davies' whereabouts have been largely unknown since the collapse of 3AC in July 2025, but Davies' lawyers listed his Singaporean residence in the Aug. 1 filings.Key to this argument was the evidence showing that Davies had applied to renounce his U.S. citizenship in December 2025 and had become a citizen of Singapore following his marriage to a Singaporean national. A choose within the chapter case of defunct crypto hedge fund Three Arrows Capital (3AC) has denied a movement that 3AC co-founder avoids contempt charges following evidence of Singaporean citizenship - The Blockchain PageIt's important to note that Singapore does not permit dual citizenship, necessitating the renunciation of his American passport.

Key Evidence Presented

The evidence presented by Davies' legal team included documentation related to his Singaporean citizenship application and the subsequent renunciation of his U.S. citizenship.This documentation proved crucial in convincing Judge Glenn that Davies was no longer subject to the court's direct authority.

Judge Glenn's Ruling

In an Aug. 11 filing, Judge Glenn stated that the previous rulings on motions regarding the subpoena issued to Davies via X (formerly Twitter) were made without the knowledge that he was a non-U.S. citizen residing outside the United States. A judge in the bankruptcy case of defunct crypto hedge fund Three Arrows Capital (3AC) has denied a motion that would have held co-founder Kyle Davies in contempt of court and imposed sanctions.This lack of awareness fundamentally altered the court's perspective on the enforceability of the subpoena and the potential for contempt charges.

Jurisdictional Issues and International Law

This case brings to light significant challenges related to jurisdictional issues in international bankruptcy proceedings. Menu. Home; Bitcoin Chart; Cryptocurrency News; Live PricesWhen individuals involved in a company's collapse reside outside the United States, and particularly when they are citizens of other nations, the legal landscape becomes far more complex.The court's ability to compel testimony, enforce subpoenas, and impose sanctions is significantly curtailed.

The Long Arm Statute

The ""long-arm statute"" is a legal principle that allows a court to exercise jurisdiction over someone who does not reside in the state where the court is located.However, there are limitations. 3AC co-founder avoids contempt charges following evidence of Singaporean citizenship Aug A judge in the bankruptcy case of defunct crypto hedge fund Three Arrows Capital (3AC) has denied a motion that would have held co-founder Kyle Davies in contempt of court and imposed sanctions.To exercise jurisdiction, the person must have sufficient minimum contacts with the state, and exercising jurisdiction must not violate due process.Simply put, owning assets, operating a business, or conducting regular business in a state might create minimum contacts.However, being present once or twice likely would not.

Comity and International Cooperation

Courts in different countries often show ""comity,"" which means they respect each other's laws and judicial decisions. Lawyers for Kyle Davies filed evidence that his U.S. citizenship had been renounced in 2025, which, according to a bankruptcy 3AC co-founder avoids contempt charges following evidence of Singaporean citizenship - XBT.MarketHowever, comity is not automatic and depends on various factors, including the fairness and impartiality of the foreign court system and whether the foreign judgment is consistent with the laws and public policy of the country where enforcement is sought. A judge in the bankruptcy case of defunct crypto hedge fund Three Arrows Capital (3AC) has denied a motion that 3AC co-founder avoids contempt charges following evidence of Singaporean citizenship - Mount Rushmore CryptoInternational cooperation is essential, but the process can be slow, expensive, and uncertain.

The Impact on 3AC Creditors and Bankruptcy Proceedings

The decision to drop the contempt charges against Kyle Davies raises concerns about the ability of 3AC creditors to recover their losses.With key figures residing outside the United States and potentially shielded from direct legal action, the pursuit of assets becomes significantly more challenging.

Challenges in Asset Recovery

Recovering assets in international bankruptcy cases is notoriously difficult. 3AC co-founder avoids contempt charges following evidence of Singaporean citizenship . Lawyers for Kyle Davies filed evidence that his U.S. citizenship had been renounced in 2025, which, according to a bankruptcy judge, left him outside the court's jurisdiction. 344 Total views 23 Total shares Listen to articleIt often involves navigating complex legal systems in multiple jurisdictions, tracking down assets hidden in offshore accounts, and dealing with uncooperative individuals. A judge in the bankruptcy case of defunct crypto hedge fund Three Arrows Capital (3AC) has denied a motion that would have held co-founder Kyle Davies in contempt of court and imposed sanctions.In an Aug. 11 filing with the United States Bankruptcy Court for the Southern District of New York, JudgeThe absence of Davies' cooperation further complicates these efforts.The lawyers for liquidators will likely need to rely on local counsel in Singapore and other jurisdictions to investigate potential asset recovery options.

The Role of Liquidators

Liquidators are appointed to manage the assets of a bankrupt company and distribute them to creditors.In the case of 3AC, liquidators have been actively pursuing assets globally.However, their efforts are hampered by the lack of cooperation from the co-founders and the jurisdictional hurdles discussed above.The liquidators are attempting to ascertain the location of all 3AC's assets and determine their value. A judge in the bankruptcy case of defunct crypto hedge fund Three Arrows Capital (3AC) has denied a motion that would have held co-founder Kyle Davies in contem 3AC co-founder avoids contempt charges following evidence of Singaporean citizenship - Halacoin Business NewsFurther challenges arise when liquidators can not ascertain the financial health of other companies connected to 3AC.

Su Zhu's Situation and the Broader Implications

It is relevant to note that 3AC co-founder Su Zhu also faced similar legal challenges. A judge in the bankruptcy case of defunct crypto hedge fund Three Arrows Capital (3AC) has denied a motion that would have held co-founder Kyle Davies inLike Davies, Zhu is a Singaporean national residing outside the United States. 3AC co-founder avoids contempt charges following evidence of Singaporean citizenship. PANews., . Lawyers for Kyle Davies filed evidence that his UAs a result, he is also not subject to the subpoena issued by the U.S.Bankruptcy Court.

Parallel Circumstances

The parallel circumstances surrounding Davies and Zhu underscore the difficulties in holding individuals accountable when they operate across international borders and hold citizenships in countries with different legal frameworks.This situation highlights the need for greater international cooperation in regulating the cryptocurrency industry and pursuing asset recovery in cross-border bankruptcy cases.

The Need for Clearer Regulations

The 3AC collapse and the subsequent legal challenges have exposed the need for clearer and more comprehensive regulations in the cryptocurrency space. 3AC co-founder avoids contempt charges following evidence of Singaporean citizenship PANews ｜ 5:53 Lawyers for Kyle Davies filed evidence that his U.S. citizenship had been renounced in 2025, which, according to a bankruptcy judge, left him outside the court's jurisdiction.These regulations should address issues such as jurisdictional reach, asset protection, and investor protection in a globalized digital environment. On Aug. 1, lawyers for Davies filed evidence that he had applied to renounce his U.S. citizenship in December 2025 and had become a citizen of Singapore following his marriage to a national. Singapore does not allow dual nationality.Clearer regulations would give investors increased confidence in the cryptocurrency markets.

Lessons Learned: What Can Investors and Regulators Take Away?

The 3AC saga offers several valuable lessons for investors and regulators alike. A decide within the chapter case of defunct crypto hedge fund Three Arrows Capital (3AC) has denied a movement that will have held co-founder Kyle Davies in contempt of courtroom and imposed sanctiThese lessons highlight the importance of due diligence, risk management, and the need for a robust regulatory framework to govern the cryptocurrency industry.

Investor Due Diligence

Investors should conduct thorough due diligence before investing in any cryptocurrency-related venture.This includes researching the company's management team, financial health, risk management practices, and legal compliance.Understanding the jurisdictional risks associated with offshore entities is also crucial.Asking questions such as: Who are the key people?What are their backgrounds?Are they credible people with experience?Where are their assets located?

• Diversify Your Portfolio: Don't put all your eggs in one basket.Diversification can help mitigate risk.
• Understand the Risks: Cryptocurrency investments are inherently risky.Make sure you understand the potential for loss before investing.
• Seek Professional Advice: If you are unsure about any aspect of cryptocurrency investing, consult a qualified financial advisor.

Regulatory Oversight and International Cooperation

Regulators need to develop a comprehensive and coordinated approach to overseeing the cryptocurrency industry.This includes establishing clear rules for asset protection, investor protection, and cross-border cooperation.International cooperation is essential to effectively address the challenges posed by globalized digital assets.Regulators should attempt to address the following issues:

1. Establish Clear Regulatory Frameworks: Provide clear rules for cryptocurrency businesses to follow.
2. Enhance International Cooperation: Work with other countries to coordinate regulatory efforts.
3. Enforce Existing Laws: Vigorously pursue those who violate securities laws and other financial regulations.

Frequently Asked Questions (FAQ)

Here are some frequently asked questions about the 3AC collapse and the legal proceedings involving its co-founders:

What caused the collapse of Three Arrows Capital (3AC)?

3AC's collapse was attributed to a combination of factors, including excessive leverage, poor risk management, and exposure to the TerraUSD (UST) stablecoin and Luna, which experienced a dramatic collapse in May 2022.These factors led to significant losses and ultimately triggered the firm's insolvency.

What is contempt of court?

Contempt of court is the act of disobeying or disrespecting the authority of a court.It can include failing to comply with a subpoena, refusing to answer questions, or otherwise obstructing the administration of justice.

Why was Kyle Davies not held in contempt of court?

Kyle Davies avoided contempt of court charges because his lawyers presented evidence that he had become a citizen of Singapore and renounced his U.S. citizenship.As a result, the U.S. court no longer had direct jurisdiction over him.

What is the role of liquidators in the 3AC bankruptcy case?

Liquidators are responsible for managing the assets of 3AC, identifying creditors, and distributing assets to creditors in accordance with bankruptcy laws.They also have the authority to investigate the causes of the company's collapse and pursue asset recovery efforts.

What are the challenges in recovering assets in international bankruptcy cases?

Recovering assets in international bankruptcy cases can be challenging due to jurisdictional issues, complex legal systems in different countries, the difficulty of tracking down hidden assets, and the potential for uncooperative individuals.The lack of international treaties between the U.S. and countries where assets may be located can also make it difficult for liquidators to recover assets.

How can investors protect themselves from similar situations in the future?

Investors can protect themselves by conducting thorough due diligence, diversifying their portfolios, understanding the risks associated with cryptocurrency investments, and seeking professional financial advice.

Conclusion: Accountability and the Future of Crypto Regulation

The case of 3AC co-founder Kyle Davies avoiding contempt charges underscores the challenges of holding individuals accountable in the increasingly globalized and decentralized world of cryptocurrency.While Davies' acquisition of Singaporean citizenship provided a legal shield, the broader implications of this case raise critical questions about the future of crypto regulation and the need for greater international cooperation.The 3AC saga serves as a stark reminder of the risks associated with unregulated financial activity and the importance of robust due diligence, risk management, and investor protection.As the cryptocurrency industry continues to evolve, regulators must adapt to address the unique challenges posed by digital assets and ensure that individuals who engage in misconduct are held accountable, regardless of their citizenship or location.The hope is that regulatory frameworks can be established that protect investors and foster responsible innovation in the crypto space.The key takeaways from this case are the following:

• Citizenship can impact legal jurisdiction.
• Cross-border asset recovery is complex.
• Stronger crypto regulations are needed globally.

This ruling should serve as a call to action for regulators and investors alike to prioritize transparency, accountability, and responsible financial practices in the cryptocurrency industry.As the industry matures, hopefully a more collaborative and proactive approach will ensure a more equitable outcome for all stakeholders.If you are considering investing in cryptocurrency, do your research, understand the risks, and seek advice from qualified professionals.