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A Judge Rejects Request to Hold Co-Founder Kyle Davies in Contempt of Court in 3AC Bankruptcy Case

Three Arrows Capital (3AC), a crypto hedge fund that ceased operations, has been facing a bankruptcy case. In this case, co-founder Kyle Davies was involved in a legal dispute regarding a subpoena and the issue of personal jurisdiction. However, a judge has recently rejected a request to hold Davies in contempt of court and impose sanctions. This decision was made on August 11 at the United States Bankruptcy Court for the Southern District of New York.

Judge’s Ruling Takes into Account Davies’ Non-US Citizenship and Residence

The judge, Martin Glenn, stated that the previous rulings did not consider the fact that Davies is not a US citizen and resides outside the country. This important detail led to the rejection of the contempt motion against Davies. The judge cited applicable federal laws that compel compliance outside the US. He highlighted that the court was operating under the presumption that Davies was a US national, but his opposition clarified that he is not.

The judge suggested that foreign representatives might seek alternative legal avenues, such as Singaporean courts, to ensure Davies’ compliance. The court recognized its limited jurisdiction over Davies due to his non-US citizenship and residence.

The Role of AI legalese decoder in the 3AC Bankruptcy Case

Amidst the legal proceedings in the 3AC bankruptcy case, an AI legalese decoder can prove to be a valuable tool. With its advanced natural language processing capabilities, this AI-powered software can help lawyers and legal professionals navigate complex legal documents and understand the intricacies of the case. It can assist in deciphering legal jargon, analyzing court filings, and identifying key legal arguments.

In the specific context of the 3AC bankruptcy case, the AI legalese decoder can aid in interpreting the judge’s ruling and its implications. By breaking down the legal language used in the ruling, this AI tool can provide a clearer understanding of the judge’s reasoning and the factors considered in rejecting the contempt motion against Kyle Davies. It can also assist in analyzing the potential impact on the overall bankruptcy case and identifying alternative courses of action for the involved parties.

Kyle Davies Renounces US Citizenship and Asserts Non-Residency

In a significant development, Kyle Davies submitted documents to the US Bankruptcy Court for the Southern District of New York, officially renouncing his US citizenship. The notarized and Apostilled copies of his citizenship renouncement were dated December 15, 2020. Davies clarified that he obtained citizenship in Singapore in January 2021 and asserted that he would not be subject to the jurisdiction of US courts.

Davies highlighted that he had not been a US citizen or resident since before the commencement of the bankruptcy case. He emphasized that the court lacked personal jurisdiction over him because he had not been validly served. He further argued that the Service Order and Compel Order were based on the incorrect presumption of his US citizenship and should be vacated.

The court records reveal that Davies renounced his US citizenship at the US Embassy in Singapore due to his intention to permanently reside in Singapore. He explained that he married a Singaporean national in 2017, obtained permanent residency, and now has two children in Singapore. As dual nationality is not permitted in Singapore, Davies had to renounce his US citizenship.

Davies has complied with a subpoena from 3AC’s liquidators, who are seeking details about the crypto hedge fund’s downfall. It is worth mentioning that Davies’ fellow co-founder, Su Zhu, who is a citizen of Singapore, is not bound by the subpoena requirements due to his non-US residency.

Although Davies is not subject to contempt of court due to his non-US citizenship, he is still represented by legal counsel in the bankruptcy court hearings. In the court documents filed on August 1, Davies’ legal representatives disclosed Su Zhu’s address in Singapore.

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