Three Arrows Capital Liquidation Faces Legal Hurdles

Background of Three Arrows Capital Bankruptcy

Three Arrows Capital (3AC), a crypto hedge fund, is undergoing liquidation proceedings. The process has encountered obstacles as the liquidators seek to subpoena the fund's founders.

Legal Proceedings and Challenges

A recent virtual hearing in the Southern District of New York Bankruptcy Court highlighted the ongoing challenges. The court, led by Judge Martin Glenn, requires additional documentation from the liquidators. This step is crucial to move forward with subpoenaing the founders, Zhu Su and Kyle Davies, through Twitter.

Communication Issues with Founders

The liquidators have faced difficulties in engaging with the 3AC founders. Despite an agreed communication protocol, cooperation from the founders has been unsatisfactory. This lack of engagement has hindered the liquidation process.

Implications for Liquidation Process

The court's decision emphasizes the need for more substantial evidence to justify using unconventional means like Twitter for serving subpoenas. This requirement underscores the complexities involved in legal proceedings related to digital assets and the crypto industry.

Conclusion

The situation with Three Arrows Capital illustrates the intricate legal landscape faced by liquidators in the crypto sector. As proceedings continue, the need for clear communication and cooperation becomes increasingly critical to resolve the bankruptcy efficiently.