Kyle Davies, co-founder of Sanjian Capital: no pending litigation or regulatory action against him

According to reports, Kyle Davies, the co-founder of Sanjian Capital, a closed hedge fund, said that there was no pending litigation or regulatory action against him. Last July, Sanjian Capital filed for bankruptcy. In October this year, the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) launched an investigation on Sanjian Capital because it misled investors in the balance sheet. In December last year, it was reported that the liabilities of Sanjian Capital exceeded US $3 billion, while the assets were only US $1 billion. Davies said that people’s anger stems from the market decline. As far as we are concerned, there are no regulatory actions and lawsuits against us anywhere. According to the previous news, Su Zhu and Kyle Davies, the founders of Sanjian Capital, recently launched Open Exchange (OPNX), a platform that allows users to trade bankruptcy claims and use claims as collateral to trade encrypted derivatives. （CoinDesk）

Interpretation of this information:

The co-founder of Sanjian Capital, Kyle Davies, denies any pending litigation or regulatory action against him despite the bankruptcy filing of the hedge fund last July. However, the United States SEC and CFTC have launched an investigation on Sanjian Capital for misleading investors in the balance sheet. Reports from December 2020 state that the liabilities exceeded the assets by US $2 billion. Davies attributes the public anger towards Sanjian Capital to the general market decline. Meanwhile, Davies and Su Zhu, the other co-founder of the hedge fund, have recently launched Open Exchange (OPNX), a platform that enables users to trade bankruptcy claims and use claims as collateral to trade encrypted derivatives.