According to information provided to Cointelegraph and Teneo by Teneo, Zhu Su (founder of Three Arrows Capital) and Kyle Davies (liquidator), they were subpoenaed via Twitter on January 5, after being granted permission by Singaporea authorities to liquidate the company following a United States bankruptcy court ruling.
In the case of Davies, the Southern District of New York Bankruptcy Court granted the subpoena order, as he is a U.S. citizen, while Singapore’s courts granted the order to both co-founders, explained a spokesperson from Teneo.
As reported by Cointelegraph, liquidators’ lawyers have repeatedly failed to engage with the founders in recent months. “A communication protocol was agreed between the liquidators and founders but has not yielded satisfactory cooperation,” according to a hearing presentation on Dec 2.
@KyleLDavies Attached to this tweet is a jpg copy of the subpoena. A copy of the subpoena, unredacted, was sent via email. It can be requested. pic.twitter.com/XAYzQ4Oveo
— 3ACLiquidation (@3ACLiq) January 5, 2023
With the move, liquidators seek to access account information, seed phrases and private keys for 3AC’s digital and fiat assets; details about the securities and unregistered shares; and any accounts held on centralized or decentralized exchanges, along with any other tangible or intangible assets. The net worth of the hedge fund was approximately $10 billion at its peak. It filed for bankruptcy on July 1, under Chapter 15.
The subpoena requested that Su and Davies “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.”
If the documents required are no longer in the possession, custody or control of the co-founders, the subpoena requires them to “state the date and nature of the document and explain why the document is unavailable.”
Back in December 2022, liquidators announced that they had sought to subpoena the founders through Twitter. Three Arrows Capital’s bankruptcy proceedings have been complicated by the unrevealed whereabouts its founders in recent months.
The liquidators of the hedge fund claimed previously that the founders were located in Indonesia and United Arab Emirates. It is difficult to enforce foreign court orders there. In addition, the founders’ citizenship and location have been called into question by the court, as it could impact the court’s ability to exercise personal jurisdiction over them.