Share this article
Three Arrows Capital Co-Founder Kyle Davies: No Pending Lawsuits or Regulatory Action
Davies spoke to CoinDesk from an office in Dubai.
Updated May 9, 2023, 4:10 a.m. Published Mar 13, 2023, 4:56 p.m.
Kyle Davies, co-founder of defunct hedge fund Three Arrows Capital, claimed there are no pending lawsuits or regulatory action against him at the current time.
Three Arrows Capital met its demise as the crypto markets tumbled amid the implosion of the $60 billion Terra ecosystem last May. The hedge fund filed for bankruptcy two months later. In October, it was reported the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) were probing the Singapore-based fund over misleading investors about its balance sheet.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Three Arrows in December was reported to have more than $3 billion of liabilities against assets of just $1 billion.
While acknowledging the anger surrounding his fund's collapse, Davies claimed the regulatory and legal heat has receded.
"If you think about, why are people angry? It has nothing to do with me actually," Davies told CoinDesk from an office in Dubai. "They're angry that the market went down. In terms of us, we have no regulatory action anywhere, no lawsuits at all."
"There's just nothing, so I know they're clearly not mad at anything. They're mad because the supercycle didn't happen maybe, I don't know. Something like that."
The whereabouts of Davies has been a key question since the demise of Three Arrows Capital. In November Davies told CNBC that he was living in Bali, Indonesia. Neither Indonesia or the United Arab Emirates have extradition treaties with the United States.
Davies recently launched the Open Exchange (OPNX), a platform that allows users to trade bankruptcy claims and use claims as collateral to trade crypto derivatives.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
JPMorgan’s tokenized dollars are quietly rewiring how Wall Street moves money
The Wall Street titan’s recent embrace of a public blockchain is a harbinger of things to come.
What to know:
- The move from a private chain to Coinbase’s Base layer is driven by demand from institutions, JPMorgan said.
- The only cash equivalent options available in crypto are stablecoins, so there’s a need for a bank deposit product for payments on public chains, according to the Wall Street bank
- Typically JPM Coin can be used on Base as a means to either keep collateral or make margin payments for transactions related to crypto purchases.
Top Stories
