Oct 17, 2022
Three Arrows Founders, Still Absent, to Get Subpoenas on Twitter
(Bloomberg) -- Liquidators charged with untangling the blowup of Three Arrows Capital are taking unusual steps to force the crypto hedge fund’s founders, Su Zhu and Kyle Davies, to cooperate with its unwinding.
Court-appointed liquidators from advisory firm Teneo, along with their lawyers, are asking a US judge for permission to serve Zhu and Davies with subpoenas through their Twitter accounts and email addresses because normal methods have failed, court papers show. The founders precise whereabouts are still unknown and their lawyers refuse to accept papers on their behalf, according to the filings.
Zhu and Davies still have not fully cooperated with the probe after the hedge fund’s implosion several months ago, according to the liquidators. Following an initial Zoom call in July, Zhu and Davies have each spoken with the liquidators only once in the intervening months, in separate video conferences.
The founders have provided only “meager” information to the liquidators, who are trying to take control of accounts and sort out the defunct hedge fund’s financial wreckage, according the court papers. For example, Davies has not yet provided access to a safety deposit that contains crypto account credentials, the liquidators say.
“The founders, through counsel, have maintained that the limited information provided to us to date, which amounts to an incomplete list of assets and selective disclosures regarding the means to access digital assets electronically, represents all of the documents in their possession relating to” Three Arrows, one of the liquidators, Russell Crumpler, said in a statement filed in US bankruptcy court on Friday. The advisers think Zhu and Davies have yet more information to turn over, he said.
Christopher Anand Daniel, a Singapore-based lawyer that Teneo says represents the founders, didn’t immediately respond to a request for comment.
The US bankruptcy case is Three Arrows Capital Ltd and Russell Crumpler, 22-10920, U.S. Bankruptcy Court for the Southern District of New York (Manhattan).
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