3AC Founder Ordered to Respond to Subpoena in 2 Weeks
• Three Arrows Capital (3AC) founder Kyle Davies has been ordered to respond to a subpoena within two weeks by the US bankruptcy court.
• The subpoena pertains to the books and records of the bankrupt hedge fund, which collapsed in June with $3 billion in liabilities against $1 billion in assets.
• Davies and fellow 3AC co-founder Su Zhu have been accused of refusing to cooperate with proceedings for the firm’s bankruptcy.
U.S Bankruptcy Court Orders Kyle Davies To Respond To Subpoena
The U.S bankruptcy court has ordered Three Arrows Capital (3AC) founder Kyle Davies to respond to a subpoena pertaining to the books and records of the bankrupt hedge fund within two weeks time. This comes after 3AC collapsed in June with $3 billion in liabilities against $1 billion in assets when its bullish trading strategy failed alongside the crypto bear market.
Subpoena Served Via Twitter
The hedge fund’s liquidators, Russell Crumpler and Christopher Farmer, had attempted to serve a court-approved subpoena to Davies via Twitter on Jan 5th but were ignored despite him being active on said social media platform. The court ultimately ruled that service of said subpoena „comported with requirements and due process“.
Accusations Of Refusal To Cooperate
Davies and fellow 3AC co-founder Su Zhu have previously been accused of refusing to engage in proceedings for the firm’s bankruptcy. Crumpler and Farmer noted that „they have made only selective and piecemeal disclosures … Refusal to cooperate violates their duties owed to Three Arrows.“
Court Appearance In BVI On May 22nd
Davies and Zhu have also been ordered to appear in court at British Virgin Islands on May 22nd or face contempt charges if they fail reply or comply with this demand as declared by said court ruling this week.
Implosion Played Part In Other Firms‘ Failures
3AC’s implosion played part various other crypto firms with exposure towards said hedge fund, such as Voyager Digital, Celsius Network, Genesis Asia Pacific having suffered similar failures respectively; all of which share same parent company (Digital Currency Group) as CoinDesk.
