Three Arrows Capital founder Kyle Davies made “only piecemeal disclosures” and refused to cooperate with investigations into the now-bankrupt hedge fund, according to a recent court filing.
According to CoinDesk, Davies was issued a subpoena via Twitter back in January. However, the documents demanding access to 3AC’s financial records were all but completely ignored.
As detailed in the filing on behalf of 3AC representatives Russell Crumpler and Christopher Farmer, Davies and fellow 3AC founder Su Zhu “refused to meaningfully engage.”
“He [Davies] has not even attempted to reach out to undersigned counsel to voice an objection or concern with the topics of the subpoena,” the filing said.
“This is not a question of partial compliance, but of no compliance whatsoever.”
Davies has previously told CNBC’s Squawk Box that he’d been “cooperating all the way.” However, this cooperation doesn’t extend to telling authorities where he actually is.
Shortly after 3AC collapsed, he and Zhu were reported to have fled to Dubai and their whereabouts are currently unknown. Indeed, the closest we’ve come to pinning them down is to locate the luxury yacht ordered — but never fully paid for — by the pair.
Protos tracked the 52-meter vessel, originally christened ‘MUCH WOW’ but now known simply as ‘RMF,’ to Malta.
Davies hasn’t disappeared from social media
Despite Davies seemingly dodging the subpoena and his continuing efforts to “thwart efforts by Foreign Representatives to gain access to documents and information,” he remains active on social media and in crypto. This is a fact that has further angered 3AC’s new management.
“Shamelessly, while ducking his obligations to his failed company, Mr. Davies has been recently active in an effort to raise tens of millions to start a new crypto exchange called ‘GTX,’” the filing claims (via CoinDesk).
According to numerous reports, Davies and Zhu want to raise $25 million to launch GTX (so named because “G comes after F” and FTX is now gone).
The idea behind the new venture is that people will be able to buy and sell bankruptcy claims from failed crypto firms, and will be able to use the claims as collateral.
When 3AC collapsed in June 2022, it took down with it a raft of big-name crypto firms, including Celsius, Genesis, and Voyager Digital. Farmer and Crumpler want to compel Davies to comply with the subpoena. This request will be considered by the court in early March.