3AC Founder Accused Of Obstructing Court Orders

Three Arrows Capital (3AC) founder Kyle Davies has been accused of defying court orders after he refused to comply with a subpoena.

• Kyle Davies accused of defiling court subpoena
• The New York court ordered a probe after 3AC representatives requested the court to subpoena books and records of the failed crypto hedge fund
• The request is due for consideration at March 2 hearing

Three Arrows Capital co-founder Kyle Davies has been accused of hampering court orders after defying a subpoena for the books and records of the now-collapsed crypto hedge fund, according to a Tuesday night filing to the New York court by representatives Russell Crumpler and Christopher Farmer.

Davies and co-founder Su Zhu have refused to meaningfully engage.

The fallen hedge fund, co-founded by Kyle Davies and Su Zhu, managed over $3 billion in assets before its insolvency last year, signaling a severe crypto winter that affiliate companies like Voyager Digital, Celsius, and DCG’s Genesis Asia Pacific went under. The court ordered a probe into the company’s books after Farmer and Crumpler filed for a Subpoena, but the two co-founders allegedly refused to cooperate, making “only selective and piecemeal disclosures,” thereby violating their duties owed to Three Arrows Capital. The filing also called out Davies for openly ignoring his obligations to the failed company, despite actively engaging in efforts to raise funds for starting a new crypto exchange, GTX.

From the filing, the two representatives had also attempted to serve a court-approved subpoena to Davies in a January 5 Twitter post, but he overlooked it despite maintaining an active social media presence. According to Farmer and Crumpler, “he has not even attempted to reach out to the undersigned counsel to voice an objection or concern with the topics of the subpoena,” which points to absolute non-compliance on Davies’ part.

In a CNBC interview, Davies said he had been contactable and cooperative the whole time, denying claims of fleeing to Indonesia for its poor extradition regulations with the U.S. The new crypto hedge fund management deplores Davies and Zhu’s boldness to brazenly promote new crypto ventures while ignoring calls to support recovery efforts. Farmer and Crumpler are trying to force Davies to comply with the subpoena, with the request being due for consideration at a hearing scheduled for March 2.

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