- Su Zhu and Kyle Davies, the founders of the infamous crypto hedge fund Three Arrows Capital (3AC), have been issued subpoenas through Twitter to provide documents related to its demise.
- Both of them were subpoenaed by the Supreme Court of Singapore. Davies also received a subpoena from U.S. authorities.
- The location of both founders is still unknown.
Su Zhu and Kyle Davies, the founders of bankrupt crypto hedge fund Three Arrows Capital (3AC), have received on Twitter formal demands by liquidators to provide documents related to the downfall of their hedge fund.
Through an ad hoc account on Twitter, the liquidators posted copies of orders made by the Supreme Court of Singapore. One thread included a subpoena for Davies approved by a US bankruptcy judge. Zhu has yet to receive a subpoena from U.S. authorities as he’s not a U.S. citizen.
“Furnish all documents available to you regardless of whether this information is possessed directly by you, your agents, representatives, employees, or investigators; or by any other legal or non-legal entities controlled by or in any manner presently or precisely affiliated with you,” the subpoena to Zhu and Davies said. The liquidators said they’d also sent the documents to Zhu and Davies through email. Their move to post the subpoenas publicly goes hand in hand with the reports that the 3AC founders are reluctant to communicate honestly with the liquidators.
The bankruptcy and liquidation process have been stalled because both Zhu and Davies’ location is still unknown.
Three Arrows Capital was, at one point, the largest crypto hedge fund in the world, with a net worth of $10 billion at its peak. However, the hedge fund suffered massive losses after Terra Luna collapsed last May. 3AC filed for bankruptcy in July.
On the Flipside
- Neither Zhu nor Davies have responded to the liquidators’ tweets though they’ve been active on Twitter since the collapse of FTX.
- It’s unclear whether the 3AC founders will cooperate with authorities. So far, they’ve been reluctant to do so.
Why You Should Care
The bankruptcy of Three Arrows Capital is still largely a mystery. The documents authorities ask Zhu and Davies to provide might illuminate what happened last year.
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