3AC Co-Founder Criticized for Ignoring Subpoena
Liquidators for the bankrupt hedge fund Three Arrows Capital (3AC) are calling out co-founder Kyle L. Davies for failing to comply with a subpoena.
In a court filing published on February 7, the liquidators expressed their frustration with Davies for failing to respond to the subpoena by January 26, 2023, and ignoring the court’s directives. The liquidators requested a new order with a deadline of March 16 for Davies to comply with the subpoena.
Davies received a subpoena on Twitter due to his activity on the platform but has not yet commented on the situation. Meanwhile, creditors are increasingly frustrated with the bankruptcy process, and liquidators have seized significant assets.
Despite the ongoing liquidation, Davies and fellow co-founder Zu Shu are moving forward with a new crypto exchange, GTX, seeking to raise $25 million.
According to the court filing, “Mr. Davies has continued to post on his Twitter account, openly ignoring the Court’s directives and enjoying media attention while he continues to thwart efforts by the Foreign Representatives to gain access to documents and information.”
The developments in the case have drawn criticism from those in the crypto industry, who are calling for the founders to accept responsibility for the $3 billion owed to creditors.