• U.S. bankruptcy court ruled that Three Arrows Capital (3AC) founder Kyle Davies must respond to a subpoena within two weeks.
• The liquidators of 3AC attempted to serve the subpoena via Twitter but Davies ignored it despite being active on the platform.
• The court also ordered Davies and fellow 3AC co-founder Su Zhu to appear in court in the British Virgin Islands on May 22.
Three Arrows Capital’s Kyle Davies Ordered to Respond to Subpoena Within 2 Weeks
The U.S. bankruptcy court has ruled that Three Arrows Capital (3AC) founder Kyle Davies must respond to a subpoena pertaining to the books and records of the bankrupt hedge fund within two weeks. The liquidators of 3AC, Russell Crumpler and Christopher Farmer, had attempted to serve a court-approved subpoena to Davies via Twitter but he ignored it despite being active on the platform.
Due Process Requirements Met by Service Via Twitter
The court determined that service of the subpoena via Twitter “comported with the requirements and due process.” This ruling means that if Davies fails to reply, he will be found in contempt of court when he appears in person at a hearing in the British Virgin Islands on May 22 along with fellow 3AC co-founder Su Zhu.
Implication of 3AC Failure
3AC collapsed in June 2020 with $3 billion in liabilities against $1 billion in assets when its bullish trading strategy collapsed alongside the crypto bear market. Its implosion played a part in similar failures from other crypto firms such as Voyager Digital, Celsius Network and Genesis Asia Pacific who were exposed to the hedge fund’s debts.
About Three Arrows Capital
Three Arrows Capital is a crypto hedge fund founded by Kyle Davies and Su Zhu which focuses on digital asset investments, blockchain technology, decentralized finance protocols, and algorithmic trading strategies across various cryptocurrencies markets around world..
The U.S bankruptcy Court has ordered 3AC’s founders Kyle Davies and Su Zhu ,to appear before them by May 22 or face contempt charges for failing comply with their orders pertaining to their books and records .Besides this ,it was also observed that service via twitter complied with due process .