SNEAK PEEK
- Since June, Zhu and Davies have kept a low profile owing to Three Arrows Capital insolvency.
- U.S. regulators are initiating an investigation into legal violations by the Singapore-located hedge fund.
- On July 1, Three Arrows Capital filed for a Chapter 15 bankruptcy in a New York court.
Liquidators for 3AC have requested a U.S. court for permission to subpoena the founders of crypto hedge fund via alternative ways.
As of now, nobody knows about the whereabouts of Su Zhu and Kyle Davies, founders of Three Arrows Capital. According to some people, both of them are on the run.
On October 14, a court motion was filed by advisory company Teneo to the U.S. Bankruptcy Court Southern District of New York. The firm said that standard ways to get in touch with the duo didn’t work and information about their whereabouts is still not unknown.
Teneo further claimed that the appeal for Advocatus Law LLP (Singaporean lawyers who are representing the duo) has refused to undertake the subpoenas on the pair’s behalf. The firm added that Su Zhu and Kyle Davies are yet to provide a direct cooperation and have been available only for two discussions ever since the proceedings have begun.
All this led to the liquidators requesting the court for other means to serve subpoenas, which includes reaching the founders on their email addresses and Twitter accounts.
Owing to the new motion’s filing, liquidators have stated seeking the right to issue subpoenas for creation of documents as well as testimony on third parties, the founders and the investment managers.
The Commodity Futures Trading Commission and Securities and Exchange Commission are investigating if Three Arrows Capital deceived investors and didn’t succeed in registering with the right agencies.
In July, Zhu updated a post on Twitter where he blamed liquidators for fraudulently in terms of information that can be used in the court. Davies retweeted the same post; however, both have gone silent after that.
Despite managing billions in assets once upon a time, 3AC ended up becoming a crypto company that went bankrupt when the bearish trend hit the market post the sell-off of digital assets prompted by Terra blockchain’s collapse as well as poor management decisions.
Meanwhile, a few days back, the premium Ethereum NFT collection from 3AC was moved.
