Kyle Davies, the co-founder of bankrupt crypto hedge fund Three Arrows Capital (3AC), has submitted documentation to court claiming he is fully a citizen of Singapore and not the United States.
In an Aug. 1 filing with U.S. Bankruptcy Court for the Southern District of New York, Davies provided notarized and Apostilled copies of the form applying for the renunciation of his U.S. citizenship on Dec. 15, 2020. He claimed to have received citizenship to Singapore following the issuance of a passport in January 2021 and was not “subjecting [him]self to, or accepting the jurisdiction of, the Courts in the United States.”
Court filings showed Davies renounced his citizenship at the U.S. Embassy in Singapore, citing his decision to live in the country long-term. He said he got married in 2017 to a Singaporean national, gained permanent residency, and has two children in the country. As Singapore does not allow dual nationality, he chose to renounce his U.S. citizenship.
The filing from Davies followed a subpoena issued at the request of 3AC liquidators aimed at gaining information on the collapse of the crypto hedge fund. Both Davies and 3AC co-founder Su Zhu were subpoenaed on Twitter — now X — in January due to their physical whereabouts being unknown, but parties have argued Davies should be held in contempt of court after he ignored the order. Zhu, a Singaporean national, would likely not be subject to the subpoena if residing outside the United States.
“Davies has not been, and cannot be, validly served with process as a non-party in this case because he has not been a United States citizen or resident since well before this case was commenced,” said an Aug. 1 filing. “Since Davies has not been validly served, the Court does not have personal jurisdiction over him. The Service Order and Compel Order were premised on the incorrect presumption that Davies is a U.S. citizen, and therefore they should be vacated.”
The whereabouts of both Zhu and Davies following the bankruptcy filing for 3AC in July 2022 has been the subject of mass speculation and debate among crypto users affected by the market crash. Lawyers have appeared before the bankruptcy court on Davies’ behalf, but the revelation of his lack of U.S. citizenship could complicate legal proceedings. The bankruptcy court will hold a hearing on Aug. 8 to discuss the matter.
Liquidators behind 3AC are seeking to recover roughly $1.3 billion in funds from Zhu and Davies, with the firm reportedly owing creditors $3.5 billion. Amid online ire surrounding the events leading to the collapse of 3AC, Zhu and Davies launched a platform for trading claims against bankrupt crypto firms called Open Exchange. Sotheby’s has also auctioned off several pieces from a nonfungible token collection formerly owned by the 3AC founders.
Canterbury MP Rosie Duffield has resigned from the Labour Party.
The 53-year-old MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.
She told Sir Keir Starmer the reason for leaving now is “the programme of policies you seem determined to stick to”, despite their unpopularity with the electorate and MPs.
In her letter she accused the prime minister and his top team of “sleaze, nepotism and apparent avarice” which are “off the scale”.
“I’m so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party,” she said.
Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality – a specific category in parliament’s register of MPs’ interests.
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Ms Duffield, who has previously clashed with the prime minister on gender issues, attacked the government for pursuing “cruel and unnecessary” policies as she resigned the Labour whip.
She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the prime minister of “hypocrisy” over his acceptance of free gifts from donors.
“Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous,” she said.
“I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear.”
Ms Duffield also mentioned the recent “treatment of Diane Abbott”, who said she thought she had been barred from standing by Labour ahead of the general election, before Sir Keir said she would be allowed to defend her Hackney North and Stoke Newington seat for the party.
Her relationship with the Labour leadership has long been strained and her decision to quit the party comes after seven other Labour MPs were suspended for rebelling by voting for a motion calling for the two-child benefit cap to be abolished.
“Someone with far-above-average wealth choosing to keep the Conservatives’ two-child limit to benefit payments which entrenches children in poverty, while inexplicably accepting expensive personal gifts of designer suits and glasses costing more than most of those people can grasp – this is entirely undeserving of holding the title of Labour prime minister,” she said.
Ms Duffield said she will continue to represent her constituents as an independent MP, “guided by my core Labour values”.