The woes of embattled and bankrupt crypto hedge fund firm Three Arrows Capital appear to be worsening.
Co-founders Kyle Davies and Su Zhu — as well as Three Arrows itself were — have been slapped with two fresh subpoenas.
The subpoenas are related to the ongoing bankruptcy of Three Arrows, whose over-leveraged implosion last year sent shock waves throughout digital asset markets. In an unusual move, the subpoenas — one in the US, one in Singapore — appear to have been served, at least in part, via Twitter.
The firm issuing both documents confirmed their authenticity, adding that an unredacted copy was also served via email. The whereabouts of both Zhu and Davies have been an open question ever since Three Arrows blew up.
Both legal documents, issued by a collective to liquidate Three Arrows and return capital to the firm’s creditors, list a series of requests for additional information related to the cryptoasset manager’s demise.
Those demands include: documents detailing the firm’s dealings, in terms of both investments and engagements with its limited partners and counterparties (including service providers); particulars of investor accounts; Three Arrows’ crypto derivatives trading activity; and a slew of the nuts and bolts behind the firm’s crypto wallets that powered its trading.
The subpoena is seeking the information in a number of formats, including any “digital communications” (which appears to be a broad remit), as well as internal spreadsheets, accounting data, calendars from Three Arrows executives and details of the firm’s “network access and server activity logs” — among others.
Davies and a lawyer representing the plaintiffs in the liquidation proceedings did not immediately return a request for additional comment.
Representatives for the collective behind the complaint, dubbed Joint Liquidators, in a statement said they “remain focused on diligently advancing the liquidation process for Three Arrows Capital Limited in order to maximize asset recoveries on behalf of creditors.”
“The founders have unfortunately resisted cooperating in these efforts, and as such, we have received authority from courts in both the US and Singapore to serve them targeted and comprehensive discovery demands through email and their frequently-used Twitter accounts,” the statement said.
It’s far from the first such effort seeking to make creditors whole. A previous demand filed a $30 million claim against the co-founders’ “much wow” super yacht.
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