Share this article
Three Arrows Capital's Kyle Davies Ordered to Respond to Subpoena Within 2 Weeks
The U.S. bankruptcy court also ruled the crypto hedge fund's liquidators' service of a subpoena to Davies via Twitter complied with due process.
Updated Mar 30, 2023, 3:20 p.m. Published Mar 30, 2023, 2:58 p.m.
Three Arrows Capital (3AC) founder Kyle Davies has two weeks to respond to a subpoena pertaining to the books and records of the bankrupt hedge fund, according to a ruling in U.S. bankruptcy court.
Davies and fellow 3AC co-founder Su Zhu have previously been accused of refusing to engage in proceedings for the firm's bankruptcy. "[Davies and Zhu] have made only selective and piecemeal disclosures ... Refusal to cooperate violates their duties owed to Three Arrows," said the hedge fund's liquidators, Russell Crumpler and Christopher Farmer, in a court filing on Feb. 8.
STORY CONTINUES BELOW
Crumpler and Farmer also attempted to serve a court-approved subpoena to Davies via Twitter on Jan. 5, but Davies ignored it despite being active on the social media site, the filing added.
Today's ruling said the court had determined the service of the subpoena via Twitter "comported with the requirements and due process."
Davies and Zhu have also been ordered to appear in court in the British Virgin Islands on May 22. They will be found in contempt of court if they fail to reply to that demand, the court said this week.
3AC collapsed in June with $3 billion in liabilities against $1 billion in assets when its bullish trading strategy collapsed alongside the crypto bear market. 3AC's implosion played a part in similar failures from a number of other crypto firms with exposure to the hedge fund, including Voyager Digital, Celsius Network and Genesis Asia Pacific.
Genesis Asia Pacific is a division of Genesis Global. CoinDesk and Genesis Global share the same parent, Digital Currency Group.
Read more: A Three Arrows Capital Founder Talks About His New Crypto Bankruptcy Exchange
More For You
Fintech and Crypto Firms Seek Bank Charters Under Trump Administration: Reuters
Financial technology and crypto firms are increasingly applying for state or national bank charters, despite the community’s historical resistance to centralized banking.
What to know:
- Fintech and crypto firms are increasingly applying for bank charters, anticipating a more favorable regulatory landscape.
- Becoming a bank allows firms to accept deposits and lower borrowing costs but brings stricter oversight.
- Regulatory bodies have historically approved few new bank charters, though recent signals suggest a more streamlined process.
Top Stories
