3AC Co-Founder Spotted in Bali Amidst Legal Troubles
Kyle Davies, co-founder of Three Arrows Capital, spotted in Bali, raising questions about his whereabouts and ongoing legal troubles.
Kyle Davies, a co-founder of the now-defunct hedge fund Three Arrows Capital (3AC), has been reportedly seen in Bali, amidst ongoing evasion of authorities following the collapse of 3AC.
Davies, who has been embroiled in legal troubles since 3AC's downfall in 2022, faces a four-month jail sentence in Singapore for his failure to cooperate with the bankruptcy investigation.
Recent reports suggest that Davies was spotted with an unidentified woman at the Milk and Madu cafe in Canggu, Bali, on November 8. This sighting aligns with confirmations from individuals involved in the bankruptcy proceedings in Singapore, indicating that Davies is currently in the Indonesian province.
The images, which closely resemble Davies' photos posted online over the past two years, have not been made public. Witnesses describe Davies as looking "healthy and content," and note that he attempted to disguise his identity when he felt he might have been recognized. He was seen wearing a pink collared shirt and sunglasses, consistent with his known style.
An eyewitness shared:
“There's no doubt it was him. The shirt and glasses were unmistakable. He initially wasn't wearing the glasses but put them on once he seemed to realize he was being recognized. He kept them on until we left.”
In a related development, Su Zhu, Davies' business partner at 3AC, was arrested in Singapore on September 29 as he was attempting to leave the country. This followed a court order by Teneo, the liquidator for 3AC, which had earlier mandated the imprisonment of both founders.
The New York Times reported that Davies and Zhu had spent several months in Bali, avoiding participation in the bankruptcy proceedings in the United States and Singapore.
The apprehension of Davies in Bali is contingent on the cooperation of local authorities. He has successfully evaded U.S. contempt charges related to the bankruptcy case after renouncing his American citizenship in 2022, following his marriage to a Singaporean national and acquiring Singaporean citizenship.
The U.S. Bankruptcy Court for the Southern District of New York, led by Judge Martin Glenn, acknowledged that it could not exercise jurisdiction over Davies. This was after Davies' legal team provided evidence of his non-American citizenship. Judge Glenn suggested that foreign representatives might seek compliance through Singaporean courts and dismissed the contempt motion against Davies, citing limited jurisdiction.
Davies' potential arrest and the four-month sentence in Singapore are a result of a committal order by Teneo for contempt of court.