Three Arrows Capital Founders Subpoenaed via Twitter

Subpoenas Issued to 3AC Founders

Su Zhu and Kyle Davies, the founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC), have been issued subpoenas through Twitter. The Supreme Court of Singapore and U.S. authorities seek documents related to the hedge fund's collapse. Despite these formal requests, the exact whereabouts of both founders remain unknown, complicating the liquidation process.

Liquidators' Strategy and Challenges

To expedite the process, liquidators resorted to posting the subpoenas on an ad hoc Twitter account, along with copies of orders from the Singapore Supreme Court. An additional subpoena for Davies was sanctioned by a U.S. bankruptcy judge. While Zhu escapes U.S. jurisdiction due to his non-citizen status, both founders have been non-cooperative, hindering the bankruptcy proceedings.

Historical Context and Current Status

Once the largest crypto hedge fund, 3AC boasted a net worth of $10 billion before suffering catastrophic losses following the Terra Luna collapse. This led to their bankruptcy filing in July. Despite the seriousness of the situation, Zhu and Davies have remained active on Twitter yet silent in response to the subpoenas.

Implications and Future Outlook

The refusal of Zhu and Davies to communicate with liquidators has stalled the bankruptcy process. The documents demanded could potentially shed light on the mysterious circumstances surrounding the hedge fund's downfall. As authorities press on, the cooperation of the 3AC founders remains uncertain, leaving the future of the case in limbo.