In public tweets, the official account for the liquidation process tagged Davies and Su respectively — and included redacted images of the court documents.
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In a surreal turn of events, the co-founders of Three Arrows Capital have been served subpoenas on Twitter.
Liquidators at the doomed crypto hedge fund have long accused Kyle Davies and Zhu Su of failing to cooperate with their inquiries — but both men have claimed this isn't the case.
Given both entrepreneurs are relatively active on Twitter — with Davies offering insights on everything from Sam Bankman-Fried to the crisis engulfing Genesis — those handling the bankruptcy sought court approval to reach them on social media instead.
In public messages, the official account for the liquidation process tagged Davies and Su respectively. Images of the subpoena document were also provided, with sensitive details redacted. Four hours on, Twitter data shows the posts have been viewed 170,000 times.
The subpoena sent to Davies is from the U.S. bankruptcy court, and informs him that he has been commanded to deliver certain documents before a deadline of Jan. 26.
Efforts to piece together what happened at Three Arrows Capital have been complicated by the fact that the co-founders' whereabouts is unknown, with both men claiming they are trying to "keep a low profile" amid fears for their personal safety.
Teneo, the consultancy firm that has been tasked with winding down Three Arrows Capital, said in a statement that it is determined to advance the liquidation process — adding:
"The founders have unfortunately resisted cooperating in these efforts, and as such, we have received authority from courts in both the U.S. and Singapore to serve them targeted and comprehensive discovery demands through email and their frequently-used Twitter accounts."
Crypto Contagion
It's going to be pretty interesting to see what unfolds next — and how Davies and Su will react. Tweeting as normal is unlikely to be an option, not least because they'll likely be greeted by replies asking about these subpoenas.
You'll be unsurprised to hear they haven't tweeted since they were served — at least at the time of writing anyway.
The impact of 3AC's collapse has been extensive to say the least, with Genesis claiming that it has lost $1.2 billion as a result of the hedge fund's collapse.
And this has had a knock-on effect in other ways. The Gemini crypto exchange had used Genesis for its loan program — and it's now claimed that 340,000 customers at the Winklevoss-owned platform are frozen out of an eye-watering $900 million.
Overall, $3 billion is owed to Three Arrows Capital's creditors, with liquidators only making modest progress in their quest to recoup these funds.
An especially interesting development concerns efforts to recover $30 million from the sale of a superyacht called "Much Wow" — clearly named in tribute to Doge, the memefied shiba inu that led to the creation of Dogecoin.
Last month, liquidators claimed a communication protocol established with Davies and Su had not yet "yielded satisfactory cooperation" — and pinpointed their location in Bali, Indonesia or the United Arab Emirates. It was noted these are jurisdictions "known for difficulties in enforcing foreign court orders."
These allegations prompted both co-founders to claim it's the liquidators failing to engage constructively — and they were "actively pursuing setting up a roundtable discussion with creditors to talk through asset recovery and a path forward."
