Three Arrows Capital Founders Subpoenaed in Ongoing Bankruptcy Proceedings

Subpoena Madness: A Twitter Tale

In a plot twist worthy of a gripping thriller, Zhu Su and Kyle Davies, the masterminds behind the infamous Three Arrows Capital (3AC), found themselves in hot water via Twitter on January 5. Yes, you read that right! The liquidators, apparently channeling their inner ‘Twitterati,’ decided to serve subpoenas in a manner we’d expect from an overly enthusiastic millennial.

The Legal Tug-of-War

As reported by the advisory firm Teneo, this legal drama unfolded after the Southern District of New York Bankruptcy Court and Singaporean authorities granted permission for the subpoenas. Teneo’s spokesperson elaborated that while Davies, a U.S. citizen, was served via the U.S. court, both founders were subpoenaed under Singapore’s jurisdiction. Talk about international reach!

Not Playing Ball

It seems the liquidators have been trying to play nice, but the plan has gone awry. The lawyers representing these financial sleuths have struggled to get a word in edgewise with the founders. A communication protocol, meant to facilitate cooperation, has felt more like a one-sided conversation at a party where no one listens, according to a presentation from a late December hearing.

The Digital Treasure Hunt

The liquidators have a shopping list of demands – and it’s not your average grocery run! They want everything from account information, seed phrases, and private keys for both digital and fiat assets to securities and unregistered shares. Essentially, they’re hunting for a treasure trove of unclaimed riches!

The Billion-Dollar Dilemma

Once upon a time, 3AC was a powerhouse, boasting a net worth of $10 billion. However, after its bankruptcy filing on July 1 under Chapter 15, the fairy tale took a dark turn. Now, the focus is on recovering any 3AC assets that remain—no matter how elusive. The subpoena reinforced that Su and Davies must produce any documents in their possession or explain why they aren’t available, like some sort of legal scavenger hunt.

The Elusive Founders

Backtracking into December 2022, liquidators revealed their attempts to reach the founders via Twitter—a move that seems oddly fitting for this online age! However, with reports suggesting that Su and Davies might be lounging in Indonesia or the UAE, the game of catch-up has proven to be a challenge, raising questions about jurisdiction and accountability.

The Jurisdictional Juggernaut

Adding insult to injury, the court has also mulled over the founders’ citizenship and location, complicating the legal landscape. If the court can’t establish jurisdiction, it’s like trying to herd cats – both frustrating and somewhat futile.

Final Thoughts

This saga remains a gripping reminder of the intersection between finance, law, and social media. Will the liquidators get what they seek? Will we see the founders unveil a secret stash of assets? Only time will tell—but one thing’s for sure: the world is watching!