Three Arrows Co-Founder Says Bankruptcy Court Can’t Sanction Him

Three Arrows Capital’s co-founder is challenging attempts by liquidators of the failed crypto hedge fund to fine him in bankruptcy court, saying he’s not subject to the court’s jurisdiction because he’s not a US citizen.

Foreign liquidators for Three Arrows, also known as 3AC, last month asked a judge to fine Kyle Davies $10,000 per day because he’s refused to cooperate with their investigation into last year’s collapse of the firm.

The filing is part of an ongoing cat and mouse game between Three Arrows’ founders and the liquidators, who are seeking to recover $1.3 billion from the founders ...