Business In News
- A U.S. bankruptcy court ordered Three Arrows Capital (3AC) co-founder Kyle Davies to respond to a subpoena served on Jan. 5.
- Davies has 2 weeks to answer the subpoena served via Twitter, the court ruled.
- 3AC liquidators Russell Crumpler and Christopher Farmer said Davies and co-founder Su Zhu refused to participate in bankruptcy proceedings, per a court filing from Feb. 8.
Per a U.S. bankruptcy court ruling on Thursday, Three Arrows Capital (3AC) co-founder Kyle Davies has two weeks to answer a subpoena served on Jan. 5 via social network Twitter. The whereabouts of Davies and co-founder Su Zhu are unknown, meaning that liquidators were galvanized to subpoena the pair on social media where they have remained active.
According to today’s ruling, the subpoena concerns financial records at the bankrupt crypto hedge fund.
“comported with the requirements and due process”, Thursday’s bankruptcy court ruling asserted regarding the subpoena served on Twitter. This means that the court fully recognizes the summon and expects the servees, Davies and Zhu in this case, to respond.
3AC Liquidators Demand Cooperation
Liquidators for the failed crypto hedge fund Russell Crumpler and Christopher Farmer previously filed documents saying that the co-founders were uncooperative. The liquidators filed that Davies and Zhu stonewalling proceedings by withholding information, making “only selective and piecemeal disclosures”.
Crumpler and Farmer argued that the pair violated their duties to 3AC by refusing to work with liquidators and the court, per a Feb. 8 bankruptcy filing. The filing also noted that Davies ignored the Jan. 5 subpoena served on Twitter despite being active on the social network at the time.
Davies and Zhu have been front boiler topics in crypto since 3AC crashed in June 2022 following exposure to the Terra ecosystem. The hedge fund’s hyper-bullish trading strategy resulted in only $1 billion in assets against $3 billion in liabilities as the crypto market reeled from Terra’s collapse.
The pair are also expected in a British Virgin Island court on May 22 or be found in contempt.