Three Arrows Capital Founders Served Subpoenas via Twitter in Bankruptcy Process
The founders of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC) have been served subpoenas by the fund’s liquidators via Twitter. While serving subpoenas on Twitter is rare, it has happened on various occasions in the past, including when Wikileaks was served on Twitter in 2018.
Founders of Defunct Crypto Hedge Fund Contacted Electronically on Twitter Due to Difficulties Reaching Them
Su Zhu and Kyle Davies, the founders of Three Arrows Capital (3AC), have allegedly been hard to contact in regard to the bankruptcy liquidation process. The now-bankrupt cryptocurrency hedge fund filed for Chapter 15 bankruptcy protection in the first week of July 2022. However, creditors and liquidators involved in the 3AC bankruptcy process have stated that contacting the founders has been difficult, and a judge has allowed liquidators to contact them electronically via email and Twitter.
Davies and Zhu have been using Twitter more frequently in recent times, particularly after the collapse of FTX. They have been vocal critics of Genesis and Digital Currency Group (DCG) amid controversy surrounding Genesis’s liquidity problems with Gemini. Davies has also been discussing the UST depegging and LUNA incident. The Twitter account “3ACLiquidation” served subpoenas to the 3AC founders via Twitter on Jan. 5, 2023.
The 3ACLiquidation Twitter account wrote, “Kyle Davies, jpg copies of the subpoena are attached to this tweet by way of service. An unredacted copy of the subpoena was served via email and can be provided upon request.” The founders were mocked on Twitter after people saw the Twitter-issued subpoena. Nic Carter tweeted in response, “Shouldn’t have tweeted so much eh Kyle?” Davies’ last tweet was on January 4, 2023, while Zhu’s last tweet was recorded on the same day as he casually commented on the new artificial intelligence (AI) software Chatgpt.
Davies and Zhu are not the only individuals or organizations that have been served with subpoenas via Twitter. In August 2018, Wikileaks was served by Cohen Milstein, a litigation firm representing the Democratic National Committee (DNC), on Twitter over allegations of collusion with Russia. In 2016, a Kuwaiti man was served his subpoena via Twitter after a federal court allowed the procedure.
Four weeks ago, Davies claimed liquidators refused “to engage” with the duo “constructively.” 3AC liquidators have gathered tens of millions of dollars in fiat, NFTs, and digital tokens and during the first week of Dec. 2022, the bankruptcy liquidators filed a motion to confiscate a $30 million super yacht reportedly owned by the 3AC founders.
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