3AC Liquidators Seek Permission for Twitter Subpoena

Liquidators Face Challenges in 3AC Case

Liquidators for Three Arrows Capital (3AC) are encountering obstacles in their efforts to subpoena the bankrupt crypto hedge fund’s founders, Zhu Su and Kyle Davies. A recent decision by Judge Martin Glenn during a virtual hearing for the Southern District of New York Bankruptcy Court highlighted the need for additional documentation before granting permission for subpoenas via Twitter.

Lack of Cooperation from 3AC Founders

The liquidators' lawyers have reported consistent non-engagement from the 3AC founders over the past months. Despite a previously established communication protocol between the liquidators and founders, it has not resulted in satisfactory cooperation. This lack of communication has complicated the legal proceedings and hindered the liquidators’ ability to effectively manage the case.

Importance of Subpoena via Social Media

The request to use Twitter for serving subpoenas underscores the innovative approaches being considered in legal processes involving digital assets and international parties. Social media platforms like Twitter provide a unique avenue for reaching individuals who are otherwise difficult to contact through traditional methods.

Next Steps for Liquidators

To move forward, the liquidators must present further documentation and evidence to the court. This step is crucial to demonstrate the necessity and practicality of using Twitter as a method for serving subpoenas. The outcome of this case may set a precedent for future legal actions involving digital communication platforms in international financial disputes.

The ongoing developments in the 3AC case reflect the complexities of navigating legal challenges in the rapidly evolving world of cryptocurrency and digital finance.