Three Arrows Capital Liquidation Efforts Face Hurdles

Liquidation Challenges for Three Arrows Capital

Liquidators for the bankrupt crypto hedge fund, Three Arrows Capital (3AC), are facing hurdles in their efforts to subpoena the fund's founders via Twitter. This decision comes from a recent virtual hearing at the Southern District of New York Bankruptcy Court. The presiding judge, Martin Glenn, has requested further documentation before granting permission for this unique method of service.

Lack of Cooperation from Founders

The liquidators have reported ongoing difficulties in engaging with 3AC's co-founders, Zhu Su and Kyle Davies. Despite having established a communication protocol, the founders have not provided the necessary cooperation, complicating the liquidation process. The lack of engagement has prompted the liquidators to seek alternative methods to reach the founders, including the use of social media platforms like Twitter.

Legal Proceedings and Implications

This situation highlights the complexities involved in modern legal proceedings, especially within the crypto industry. The case underscores the challenges faced by legal entities when dealing with digital assets and the often elusive figures behind them. As the proceedings continue, the court's decision on the use of Twitter for legal communications could set a precedent for future cases involving digital and decentralized platforms.

Moving Forward

The outcome of this case could have significant repercussions for how bankruptcy and liquidation cases are handled in the crypto sector. It also raises questions about the responsibilities and accountability of founders in digital asset management. The court's handling of this matter is closely watched by industry stakeholders, who are keen to see how traditional legal frameworks adapt to the rapid evolution of digital finance.