Kyle Davies has sought to challenge claims by the fund’s liquidators accusing him of withholding important documents and contempt of court. Davis claims he renounced his U.S. citizenship at the end of 2020, so the powers of U.S. courts no longer apply to him.
Davis’ statement comes after TAS liquidators have been trying for months to reach him and another hedge fund co-founder, Su Zhu, for several months. Liquidators had earlier said Davis and Zhu were ignoring their obligations to creditors and hiding their whereabouts. Given Davis’ failure to respond to the subpoena, the TAC liquidators demanded that Davis be found in contempt of court and ordered to pay a $10,000 fine and court costs.
Davis’ attorneys explained that under the bankruptcy subpoena rule, the court cannot compulsorily serve subpoenas on non-residents of the U.S. who are outside the country. Davis’ defense also noted that the subpoena was not properly served on him – it was sent to his Singaporean lawyer, not directly to Davis.
Recall that in May, a court barred former BitMEX CEO Arthur Hayes from publicly insulting Soo Joo. Hayes was demanding that he pay a $6 million debt incurred after the hedge fund closed.