Kyle Davies co-founded Three Arrows Capital (3AC) alongside Su Zhu in 2012, building the Singapore-based fund into one of crypto’s largest hedge funds before its catastrophic June 2022 collapse — which left creditors including Genesis, Voyager, and BlockFi holding over $3.5 billion in combined claims — and subsequently evading court-appointed liquidators following a British Virgin Islands liquidation order, reportedly living abroad while facing multiple legal proceedings.
Background
Kyle Davies grew up in Singapore and attended Phillips Academy Andover, where he and Su Zhu were classmates. He later studied economics at Columbia University. After graduating, he worked at Credit Suisse as an interest rate and foreign exchange trader. His background in institutional finance trades informed 3AC’s early focus on arbitrage and rates strategies.
Three Arrows Capital (3AC)
Davies co-founded 3AC in Singapore in 2012. Unlike many crypto funds that launched during the 2017 boom, 3AC had a multi-year track record as a traditional finance-adjacent vehicle before pivoting heavily into crypto. Davies was the quieter public presence compared to Su Zhu, who built a significant Twitter following, but Davies was equally central to fund operations and investment decisions.
3AC was known for taking significant positions in ecosystem tokens often coinciding with visible promotion — raising questions about potential conflicts of interest between the fund’s investment activities and its advisory/promotional relationships with projects.
The Collapse
During the May–June 2022 crypto market downturn and the Terra/Luna collapse, 3AC’s heavily leveraged positions in LUNA, Grayscale Bitcoin Trust (GBTC), and other assets led to catastrophic losses. Lenders — including Genesis ($2.36 billion), Voyager ($655 million), BlockFi, and dozens of other counterparties — filed claims totaling over $3.5 billion after 3AC failed to meet margin calls.
A British Virgin Islands court issued a liquidation order for 3AC on June 27, 2022. Teneo was appointed as liquidator. The case was recognized in U.S. courts.
Legal Status
Davies and Zhu became difficult to locate after the collapse. Davies was reported to be living in Bali, Indonesia, an information destination with no significant extradition treaty framework easily invoked for crypto civil matters. As of 2025, Davies remained wanted by liquidators who alleged he failed to cooperate with the court-mandated process, consistent with Zhu’s contempt finding in Singapore.
Post-3AC Ventures
Davies and Zhu launched OPNX (Open Exchange), a platform for trading claims against bankrupt crypto firms — a venture that drew broad condemnation from those holding claims against 3AC. OPNX ceased operations in February 2024.
Key Dates
- 2012 — Co-founds Three Arrows Capital with Su Zhu in Singapore.
- 2021 — 3AC reaches ~$10B AUM; major positions in LUNA, GBTC, AVAX, SOL.
- June 2022 — 3AC fails to meet margin calls; BVI liquidation order issued; $3.5B+ in claims.
- 2023 — Su Zhu arrested; Davies reportedly in Bali, avoiding extradition.
- February 2024 — OPNX ceases operations.
Common Misconceptions
- “3AC only failed due to market conditions beyond anyone’s control.” — Liquidators and creditors allege that 3AC misrepresented its financial position and used borrowed funds inconsistently with loan agreements, suggesting a level of bad faith beyond simple market losses.
Last updated: 2026-04