Kyle Davies of Sanjian Capital States No Pending Legal Action, Despite SEC and CFTC Investigation

03/14/2023 18:55 • Blockchain Briefs • 85 views

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）

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

Analysis based on this information:

The co-founder of Sanjian Capital, Kyle Davies, recently made a statement stating that there was no pending legal action or regulatory action against him, despite the fact that the company filed for bankruptcy in July of last year. This comes in the wake of an investigation launched by both the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in October on Sanjian Capital. The investigation was launched as a result of investors being misled on the balance sheet.

It was reported in December of 2020 that Sanjian Capital’s liabilities exceeded US $3 billion, while its assets were only US $1 billion. Davies has stated that the public’s anger stems from the recent market decline, and that there are no lawsuits or regulatory actions against the company anywhere.

Despite the fact that the company filed for bankruptcy, its founders, Su Zhu and Kyle Davies, recently launched Open Exchange (OPNX), which is a platform that allows users to trade bankruptcy claims and use claims as collateral to trade encrypted derivatives. This move has raised concerns among industry experts, as it may be seen as a disregard for the issues that led to the bankruptcy of Sanjian Capital.

The fact that Sanjian Capital filed for bankruptcy and is under investigation by the SEC and CFTC paints a bleak picture for the company. However, Davies’ statement that there are no pending legal or regulatory actions against him may prove to be a positive sign for him personally. The launch of Open Exchange (OPNX) has raised concerns about the ethical nature of trading bankruptcy claims and using them as collateral, and may lead to further scrutiny of the founders’ actions.

Overall, it is clear that the situation surrounding Sanjian Capital and its founders is complex and multifaceted. The company’s bankruptcy and subsequent investigation by regulatory bodies has led to concerns about its actions and the actions of its founders. While Davies’ statement may be seen as a positive sign for him personally, it is unlikely to have a significant impact on the overall situation.

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