3AC’s co-founder Davis under fire for ignoring a Twitter subpoena 


Most read

Loading Most Ready posts..


  • Liquidators accuse Kyle L. Davies, 3AC’s co-founder, of ignorance and arrogance
  •  3AC founders Zhu Su and Kyle Davies suspected to be living in countries with difficult foreign law navigation
  • Three Arrow founders are at work to start GTX with hopes of raising $25 million

Liquidators for the defunct crypto hedge fund Three Arrows Capital (3AC) have accused co-founder Kyle L. Davies of failing to cooperate. The court document dated February 7 indicates that Davies was expected to respond with the subpoena by January 26, 2023.

According to a recent filing made to the New York bankruptcy court Kyle Davies, co-founder of 3AC is delaying or ignoring requests from the 3AC Liquidation team. In addition, executives from the advising firm Teneo allege that Davies solicited investors “reprehensibly” for a new crypto business. On January 5, 2023, the “3acliquidation” Twitter account issued subpoenas via Twitter to the 3AC founders.

Three Arrow’s co-founder served on Twitter

5 January, 3AC founders Zhu Su and Kyle Davies were subpoenaed via Twitter after Singaporean authorities granted authority to the liquidators in response to a United States bankruptcy court order.

As Davies is a United States citizen, the Southern District of New York Bankruptcy Court issued the subpoena. In addition, the courts of Singapore awarded the injunction to both co-founders.

With this action, liquidators want access to 3AC’s digital and fiat asset account information, seed phrases, and private keys. In addition, they seek information regarding the securities and unregistered shares. Lastly, they require details regarding any accounts held on centralized or decentralized exchanges, as well as any other tangible or intangible assets.

At its peak, the hedge fund had a net worth of $10 billion. However, it filed for bankruptcy on July 1 under Chapter 15. The subpoena compelled Su and Davies to:

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.

Three Arrow’s Liquidators

Suppose the requested documents are no longer in the co-founders’ possession, custody, or control. In that case, the subpoena asks them to state the date and nature of the document and explain why it is unavailable.

In December 2022, liquidators announced via Twitter that they had attempted to subpoena the founders. In recent months, the unknown locations of Three Arrows Capital’s founders have posed obstacles in the company’s bankruptcy procedure.

The hedge fund’s liquidators have previously asserted that the fund’s founders reside in Indonesia and the United Arab Emirates, where it is challenging to enforce foreign court orders. In addition, the court has questioned the founders’ citizenship and location since it may affect its ability to exercise personal jurisdiction over them.

3AC’s Kyle Davis refuses to cooperate with liquidators

A New York court filing revealed Davies’ activities when he flagrantly declined to comply with Twitter subpoenas. In addition, he was accused of impeding an investigation into 3AC, which had over $3 billion in assets prior to its untimely collapse last year.

In a court document filed Tuesday night, attorneys and two Teneo representatives revealed that the liquidators have not yet received a response from Davies. While the attorneys indicate that the 3AC founders are looking to launch a new cryptocurrency business, the liquidators also reference Davies’ social media activity.

He has not even attempted to reach out to the undersigned counsel to voice an objection or concern with the topics of the subpoena. This is not a question of partial compliance, but of no compliance whatsoever.

Liquidators court filing

Given the unpaid amount, the 3AC liquidation case remains the focus of attention. In addition, Davies was subpoenaed on Twitter due to his participation on the platform.

Those in the crypto industry have urged entrepreneurs to accept accountability rather than tweet about crypto ventures. However, the developments in the case do not appear to dissuade them, as they are focused on other initiatives.

He is, without question, aware of the Subpoena … having been tagged in 41 replies and 64 retweets … and has, once again, chosen to ignore his duties to Three Arrows. All the while, Mr. Davies has continued to post on his Twitter account, openly ignoring the Court’s directives and enjoying media attention. In contrast, he continues to thwart efforts by Foreign Representatives to gain access to documents and information.

Liquidators court filing

The crypto community frowns upon the new projects

The founders are already hard at work on GTX, a new crypto exchange. They hope to raise $25 million and are working with the CoinFlex founders. Given that 3AC is in the midst of a huge liquidation, it grabbed a lot of attention.

Meanwhile, creditors are becoming increasingly dissatisfied with the bankruptcy process. Liquidators seized at least $35.6 million in fiat currency and obtained access to an account containing over 60 crypto assets.

Since the bankruptcy procedures began, liquidators have voiced displeasure with their attempts to contact 3AC co-founders Su Zhu and Davies. At the time, Zhu insisted that the duo had been in contact with the necessary authorities “from day one.”

However, 3AC liquidators filed complaints shortly after the collapsed cryptocurrency hedge fund filed for bankruptcy, utilizing the Chapter 15 process to protect the company’s assets in the United States.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Share link:

Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

Stay on top of crypto news, get daily updates in your inbox

Related News

Subscribe to CryptoPolitan