3AC liquidators subpoena founders on Twitter

3AC liquidators subpoena founders on Twitter

The Three Arrows Capital liquidators have subpoenaed the founders of the collapsed Singapore-based hedge fund, urging them to provide all information concerning the defunct entity.

Zhu Su and Kyle Davies subpoenaed by liquidators

According to details surfacing the internet, the pioneers of the collapsed crypto hedge fund, Three Arrows Capital (3AC) co-founders Kyle Davies and Zhu Su were served with subpoenas on Jan.5.

This happened after the entity’s liquidators obtained legal acceptance from Singaporean law enforcement in response to an insolvency judicial by US courts.

According to the Tweet posted by 3ACLiquidators, Zhu Su and Davies were mandated to provide all documents concerning all operations of the firm in their possession.

If a third party handled the documents, the subpoena also requires them to “state the date and nature of the document and explain why the document is unavailable.” 

Davies’ case was served differently from that of Zhu Su. According to the official documents published on Twitter, Davies was issued the subpoena by the Southern District jury of New York Bankruptcy because he is a U.S. citizen.

Moreover, the Singapore courts issued the order on both founders, according to a spokesperson from Teneo. 

3AC co-founders escaped

Hearing presentations issued on December 2nd state that the liquidators’ efforts to communicate with the two founders have been futile for the past couple of months.

The last alleged whereabouts of Zhu Su and Davies were Indonesia and the United Arab Emirates. The individuals reportedly fled to these countries as a strategic move to make legal proceedings challenging to enforce.

Three Arrows Capital became the first firm to file for bankruptcy in 2022. The founders allegedly conducted overleveraging on long positions across major crypto projects that ended up in meltdown when the market crashed.

The firm also held billions belonging to crypto-oriented companies.

For instance, Genesis recently issued a legal claim of $2.4 billion against the company. The company’s collapse also led to the downfall of Voyager Digital, which had lent more than $650 million to the firm.

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Source: https://crypto.news/3ac-liquidators-subpoena-founders-on-twitter/