According to recent court documents, Kyle Davies, co-founder of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC), allegedly did not respond to a subpoena from the firm’s current liquidators, despite it being sent via Twitter. Representatives from consulting firm Teneo say Davies continues to ignore his obligations to Three Arrows.
3AC liquidators frustrated by lack of response from co-founders
A recent filing filed with the New York bankruptcy court states that Kyle Davies, co-founder of 3AC, is obstructing or ignoring the requests of the 3AC Liquidation Team. Furthermore, according to representatives of the advisory firm Teneo, Davies is accused of soliciting investors “without shame” for a new cryptocurrency project. On January 5, 2023, the Twitter account “3acliquidation” served subpoenas to the 3AC founders via Twitter.
Lawyers and two Teneo representatives explained in a court filing released Tuesday night that the liquidators have yet to receive a response from Davies. While the lawyers point out that the 3AC founders are looking to start a new crypto project, the liquidators also mention that Davies has been active on social media. “He has not even attempted to contact the undersigned attorney to express an objection or concern with the subpoena issues. It is not a question of partial compliance, but of no compliance”, details the file.
The liquidators add:
He is, without a doubt, aware of the subpoena… having been tagged in 41 replies and 64 retweets… and, once again, has chosen to ignore his duties to Three Arrows. Meanwhile, Mr. Davies has continued to post on his Twitter account, openly ignoring the Court’s directives and enjoying the media spotlight as he continues to thwart efforts by Foreign Representatives to gain access to documents and information. .
The liquidators have voiced frustration over his attempts to communicate with 3AC co-founders Su Zhu and Davies since the bankruptcy proceedings began. At the time, Zhu maintained that the couple has been communicating with all relevant authorities “since day one.” However, complaints from 3AC’s liquidators arose shortly after the defunct cryptocurrency hedge fund filed for bankruptcy, using the Chapter 15 process to safeguard the company’s assets in the United States.
Based on reports and an interview with Davies in November 2022, Davies is believed to be in Bali. During the interview, CNBC’s Becky Quick asked Davies if he was “in Bali because Indonesia is one of the seven countries that will not extradite you to the United States.” Zhu’s location is thought to be Singapore or the United Arab Emirates (UAE), but the exact location of either of 3AC’s co-founders is uncertain at the time of writing.
What do you think of the allegations against Kyle Davies and the ongoing legal battle over Three Arrows Capital? Share your thoughts in the comments below.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
