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Sanjian Capital’s Co-Founder Claims No Pending Litigation or Regulatory Action Amid SEC and CFTC Investigation

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Sanjian Capitals Co-Founder Claims No Pending Litigation or Regulatory Action Amid SEC and CFTC Investigation

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:


Kyle Davies, the co-founder of the now-closed hedge fund Sanjian Capital, recently stated that there is currently no pending litigation or regulatory action against him. This comes amidst an investigation by the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) on Sanjian Capital. The investigation was initiated in October of this year due to claims that Sanjian Capital misled investors in their balance sheet.

This news follows Sanjian Capital’s filing for bankruptcy in July of 2020. In December of 2019, it was reported that the liabilities of Sanjian Capital exceeded $3 billion, while the assets were only $1 billion. The current investigation by the SEC and CFTC adds another layer of scrutiny to the already complicated situation.

However, Davies seems to be brushing off concerns about the investigation and potential legal actions, suggesting that people’s anger towards the situation stems from market decline. Despite this claim, investors who lost money due to Sanjian Capital’s questionable practices may seek retribution through legal channels.

A recent report from CoinDesk also highlights that Davies and fellow Sanjian Capital co-founder Su Zhu have launched a new platform called Open Exchange (OPNX). The platform allows users to trade bankruptcy claims and use them as collateral for trading encrypted derivatives. This move may seem controversial considering the history of Sanjian Capital, but it also could be seen as an attempt to make good on past mistakes and provide value to those who were impacted by the hedge fund’s collapse.

In conclusion, Kyle Davies’ claim that there are no pending legal actions against him may provide temporary relief, but the ongoing investigation by the SEC and CFTC remains a concern for all stakeholders. The launch of Open Exchange may be seen as a contrite move or further proof of a lack of accountability, depending on one’s perspective. This story highlights the importance of transparency and integrity in the finance industry and serves as a reminder of the potential consequences of misleading investors.

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