Liquidators Face Hurdles in Tracking Down Founders

In a recent virtual hearing on December 2, Judge Martin Glenn of the Southern District of New York Bankruptcy Court laid down the law for the liquidators of the now-defunct Three Arrows Capital (3AC). According to the judge, the liquidators must present additional documentation before they can be granted permission to issue subpoenas to co-founders Zhu Su and Kyle Davies via Twitter. Who knew a social media platform could become a courtroom ally?

Escalating Communication Breakdown

The legal representatives for the liquidators expressed their growing frustration, stating that attempts to establish a communication protocol with Su and Davies have been anything but fruitful. “A communication protocol was agreed between the liquidators and founders but has not yielded satisfactory cooperation,” they lamented during the hearing, making it sound like they were trying to get a hold of a couple of elusive teenagers instead of seasoned hedge fund managers.

Global Hide-and-Seek

As if this drama were not complex enough, the founders have become masters of evasion, residing in locations that make enforcing court orders tricky—specifically, Indonesia and the United Arab Emirates. To add fuel to the fire, they also refused to accept legal service through their lawyers based in Singapore. Talk about making a legal team’s job a bit more challenging! In the world of finance and crypto, it seems that everybody’s playing hide-and-seek.

Judge’s Scrutiny Over Jurisdiction

During the hearing, Judge Glenn raised the all-important question of personal jurisdiction. He pointed out that determining the founders’ citizenship and current location is vital in figuring out whether the court could serve them with subpoenas legally. He quipped, “From the court’s standpoint, it is relevant to the issue of servicing subpoenas on them.” It seems like the situation could lead to a game of legal chess rather than a straightforward process.

The Financial Fallout

Meanwhile, the liquidation firm Teneo claims control over a substantial amount of assets from 3AC, including $35.6 million in fiat currencies from Singaporean banks and over 60 different types of tokens. These are being managed in a digital currency custody account, with conversions to U.S. dollars occurring as needed. It appears the negativity that surrounded the fall of 3AC hasn’t stopped the liquidators from rifling through the remains of the company’s digital treasure trove.

In conclusion, the saga of 3AC continues, and as the liquidators attempt to navigate through this murky financial terrain, one thing is clear: social media might be the next step for legal communications. Perhaps we’ll soon see a Twitter DM from the court? Never a dull moment in the crypto world, folks!