A Twitter DM summoning the founders of Three Arrows Capital (3AC) to court may be liquidators’ best shot at smoking out the company’s founders, Su Zhu and Kyle Davies, who are still nowhere to be found.
Court documents released on Friday reveal that liquidators working to gather up all of 3AC’s assets have requested to serve the founders subpoenas via Twitter or email. In the documents, liquidators justify the unusual tactic, 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.”
They want to question the pair under oath.
Bloomberg also reported that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are now investigating whether or not 3AC misled investors about the security of their balance sheets and whether or not the company had registered with regulators.
Liquidators were given permission to investigate assets held by 3AC including, crypto, NFTS, bank accounts, and property in June this year. However, Zhu and Davies are proving somewhat tricky to track down. Not only that, the company’s NFT arm started to move assets earlier this month.
Court papers described the pair refusing to give “acceptable cooperation,” while liquidators said, “The founders’ refusal to offer forthright cooperation has hindered our ability to perform our duties,” (via WSJ).