Kyle Davies and Zhu Su have been accused of failing to comply with various court orders — compelling them to produce documents related to 3AC's financial affairs.
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Liquidators for Three Arrows Capital are seeking permission to serve subpoenas against the bankrupt crypto hedge fund's co-founders via Twitter.
Kyle Davies and Zhu Su have been accused of failing to comply with various court orders — compelling them to produce documents related to 3AC's financial affairs.
In the unusual motion calling for the subpoenas to be delivered over social media, liquidators Russell Crumpler and Christopher Farmer claimed both men "continue to conceal their whereabouts and have failed to cooperate" — even through their own lawyers.
Despite communicating with Advocatus Law, the firm representing Davies and Su, the liquidators are yet to gain control of the digital assets that 3AC held when it went bust — or the passwords needed to access them.
A motion argues that sending subpoenas through Twitter and email is now necessary because prolonged efforts to determine their physical locations have been unsuccessful.
If this motion isn't approved, the liquidators fear that crypto holdings could be transferred or disposed of without their knowledge or permission — affecting creditors in the case.
"That risk is heightened because a substantial portion of the debtor's assets are, or were, comprised of cash and digital assets, such as cryptocurrencies and non-fungible tokens, that are readily transferrable."
Three Arrows Capital suddenly collapsed after defaulting on a $660 million loan from Voyager Digital — prompting that company to enter into bankruptcy proceedings as well.
