Three Arrows Capital (3AC) liquidators have questioned a US court for approval to obtain a warrant from the founders of the increasingly desperate crypto hedge fund via multiple methods.

Su Zhu and Kyle Davies, the founders of Three Arrow Capital, have yet to be found, with some criticizing them for fleeing the country.

Teneo, an advisory firm, asserted in a court motion filed in the United States Bankruptcy Court Southern District of New York on Oct. 14 that standard methods of contacting the duo had failed because the Founders' exact location was unknown.

It also stated that Advocatus Law LLP, the Singapore counsel claiming to represent the Founders, has refused to acknowledge the subpoenas on their behalf and that the pioneers have yet to offer any sincere cooperation, having made themselves directly accessible for two brief conversations since deliberations began.

As a result, the liquidators requested that the court use alternative methods of serving subpoenas, which included contacting the duo via their Twitter accounts and email addresses.

With the submission of this new motion, liquidators claim they want the power to serve court orders for the documents to be produced and testimony on the Founders, Investment Managers, and intermediaries.

Meanwhile, according to a Bloomberg report from October 18, US regulators are investigating possible legal infringements by the Singapore-based hedge fund.

According to Bloomberg, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) continue to investigate regardless of whether 3AC misled investors and did not register with the relevant agencies. Since the firm's insolvency in June, both Zhu and Davies have kept a low profile.

On July 1, 3AC filed for Chapter 15 bankruptcy in a New York court; however, Zhu and Davies' current location has never been revealed. 

Zhu emerged briefly on Twitter in July, accusing liquidators of 'baiting' them for data to use in court, with Davies reposting the post, but the duo has since gone radio silent.

3AC once managed billions of dollars in assets but went bankrupt during the bear market due to a broad sell-off in digital assets fueled in part by the collapse of the Terra blockchain and accused of poor management decisions on their part.

What do you think is happening with 3AC liquidators and their quest to subpoena the missing founders? Let us know your thoughts by sharing this article on social media.

Oct 18, 2022
Crypto News

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