Three Arrows Capital (3AC) co-founders Su Zhu and Kyle Davies will be required to hand over “any recorded information” relating to the bankrupt crypto hedge fund after a federal judge greenlit subpoenas to be dished out to the firm’s former leadership.
The subpoenas will demand that Zhu and Davies give up anything from company documents and papers to financial records and account details. The judge’s order also specifies that documents must be handed over even if they’re in the possession of agents, representatives, spouses, employees, investigators; or “any other legal or non-legal entities.”
The handing out of subpoenas is the latest chapter in the drawn-out and very public collapse of the fund that, at its peak, was worth $10 billion. The company, which was a major investor in the failed Terra LUNA ecosystem, filed for Chapter 15 bankruptcy in July 2022.
Among the other 3AC bigwigs awaiting legal papers are Davies’ wife Kelly Chen, directors Cheuk Yao Pau and Mark Dubois, and lawyer Hannah Terhune.
Everybody named has 14 days to respond.
Zhu and Davies are still laying low
In October, it was revealed that liquidators looking to gather up all of 3AC’s assets had asked for permission to serve Davies and Zhu subpoenas via Twitter or email.
In court documents, liquidators justified their unusual approach by saying, “The Founders’ recent use of their Twitter accounts and the Founders’ use of those accounts for purposes related to the Debtor makes those Twitter accounts a reasonable means to provide the Founders notice of discovery in this action.”
Liquidators had been given permission to investigate 3AC’s assets, including crypto, NFTS, bank accounts, and property, back in June but Zhu and Davies have, so far, been nowhere to be seen.
However, the Cayman Islands-registered yacht bought by the pair — named ‘MUCH WOW’ — has been spotted in Malta. As reported by Protos in early November, the vessel, now rechristened the ‘RMF,’ was purchased by a mystery buyer sometime in late September or early October.