3AC co-founder rejects bankruptcy court jurisdiction, claims renunciation of US citizenship.

3AC co-founder rejects bankruptcy court jurisdiction, claims renunciation of US citizenship.

The Renunciation of U.S. Citizenship by Kyle Davies: Exploring the Impact on the Blockchain Industry

Introduction

The blockchain industry has recently been hit with a significant development involving Kyle Davies, the co-founder of the bankrupt crypto hedge fund Three Arrows Capital (3AC). Davies, in an unexpected move, has submitted documentation claiming that he is now a citizen of Singapore and no longer a citizen of the United States. This move has raised eyebrows and sparked discussions within the blockchain community regarding the implications and potential complications surrounding this renunciation of U.S. citizenship.

Background and Renunciation Process

In the filing submitted to the U.S. Bankruptcy Court for the Southern District of New York, Davies provided notarized and Apostilled copies of the form from December 15, 2020, applying for the renunciation of his U.S. citizenship. He explained that he obtained citizenship to Singapore in January 2021 following the issuance of a passport. By becoming a citizen of Singapore, Davies argues that he is no longer subject to the jurisdiction of U.S. courts.

Davies’ decision to renounce his U.S. citizenship stems from several factors. Court documents reveal that he got married to a Singaporean national in 2017, gained permanent residency in Singapore, and has two children in the country. Additionally, Singapore does not allow dual nationality, leaving Davies with the choice to renounce his U.S. citizenship to fully embrace his new Singaporean identity.

The renunciation of U.S. citizenship by Kyle Davies has significant implications for the ongoing legal proceedings surrounding the collapse of 3AC. This renunciation came after Davies and 3AC co-founder Su Zhu were issued a subpoena on Twitter. These subpoenas aimed to gather crucial information regarding the collapse of the crypto hedge fund; however, Davies’ physical whereabouts remain unknown, complicating the progress of the legal proceedings.

Davies argues that he cannot be validly served with a subpoena since he has not been a U.S. citizen or resident for quite some time. In his filing, he asserts that the court does not have personal jurisdiction over him. This unexpected revelation has caused parties involved to debate whether Davies should be held in contempt of court for ignoring the subpoena. It is important to note that Su Zhu, being a Singaporean national, would likely not be subject to the subpoena if residing outside the United States.

The Augmented Disarray and Potential Ramifications

The whereabouts of both Davies and Su Zhu following the bankruptcy filing for 3AC in July 2022 have been a subject of mass speculation and debate among individuals impacted by the market crash. Lawyers have represented Davies before the bankruptcy court, but the revelation of his lack of U.S. citizenship adds a layer of complexity to the legal proceedings.

Liquidators overseeing the collapse of 3AC are now seeking to recover approximately $1.3 billion in funds from Davies and Zhu, while the firm reportedly owes creditors $3.5 billion. This situation has caused outrage within the blockchain community, considering the significant financial impact on stakeholders. In response, Davies and Zhu launched a platform called Open Exchange, allowing individuals to trade claims against bankrupt crypto firms. Furthermore, Sotheby’s auctioned off several pieces from a nonfungible token collection formerly owned by the 3AC founders.

Conclusion

The renunciation of U.S. citizenship by Kyle Davies has sent shockwaves through the blockchain industry, leading to questions about the impact on legal proceedings and the broader implications for stakeholders. As the bankruptcy court prepares to hold a hearing on August 8, the outcome of this situation will undoubtedly have a lasting effect on the future of the blockchain industry. It remains to be seen how this renunciation will shape the landscape of cryptocurrency regulation and the accountability of crypto founders.

Magazine: 3AC cooks up a storm, Bitcoin miner surges 360%, Bruce Lee NFTs dive: Asia Express

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