3AC Co-founder Kyle Davies Escapes Subpoena Fine by Relinquishing US Citizenship

Kyle Davies, co-founder of Three Arrows Capital (3AC), avoids substantial fines linked to a subpoena by renouncing his US citizenship. Learn about the surprising legal maneuver that spared Davies the penalty.

Kyle Davies, a co-founder of Three Arrows Capital (3AC), has managed to evade significant fines tied to a subpoena by giving up his US citizenship. Judge Martin Glenn ruled that, since Davies was not a US citizen when the subpoena was issued in a New York bankruptcy court, he would not be subject to the fines.

The situation arose when 3AC’s liquidators sought to hold Davies in contempt for not complying with a subpoena. They proposed daily fines until he complied. Attempting to serve the subpoena via Twitter due to uncertainty about Davies’ whereabouts, the liquidators faced a challenge.

Davies’ legal team countered by providing evidence that he had renounced US citizenship and become a citizen of Singapore by late 2020. This crucial detail influenced the judge’s decision to waive the fines, highlighting the interplay between legal matters and citizenship changes in our globalized world.

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