Fugitive 3AC co-founder on Twitter urged to cooperate with court

The founder of the failed cryptocurrency hedge fund Three Arrows Capital (3AC), Kyle Davis, has been publicly ordered to cooperate with the court as part of the firm’s bankruptcy. subpoenas published on the page of the liquidators of the hedge fund in the social network.

The ruling requires Davis to provide a court in New York by January 26, 2023, with all information relating to the bankrupt hedge fund, including cryptocurrency addresses. Cooperation demands also apply to another 3AC co-founder, Su Zhu, but he must submit the data to the Singapore court, since there is no exact data on his citizenship. The decision to publish the subpoenas via Twitter is due to the fact that the exact whereabouts of both are still unknown.

Teneo, a consulting firm helping to liquidate the hedge fund, says the 3AC co-founders are not helping the bankruptcy court. Therefore, the parties decided to enlist the support of the court to oblige both to disclose information by e-mail. Despite the fact that the location of the founders of 3AC is unknown, both often post messages on Twitter, which attracted the attention of the liquidators.

In July 2022, Three Arrows Capital filed for bankruptcy under Chapter 15 of the US Bankruptcy Code. According to media reports, with the help of Chapter 15, 3AC wants to avoid the confiscation of the fund’s assets in the United States, since it owes about $ 2.8 billion to clients. Creditors include the already bankrupt Celsius Network, Voyager Digital and BlockFi, as well as the troubled investment fund Digital Currency Group ), Moonbeam Network, Algorand, BitGo, Galaxy Digital, SBI Crypto and CoinList.

As the media found out, the US Securities and Exchange Commission (SEC) together with the Commodity Futures Trading Commission (CFTC) are investigating the activities of Three Arrows Capital. Regulators want to find out if the hedge fund violated local laws when it misled investors about its corporate balance sheet as well as its legal status.

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