Court documents reveal that Kyle Davies, the co-founder of defunct cryptocurrency hedgefund Three Arrows Capital (3AC), has not responded to a summons issued by the firm’s liquidators. The summons was delivered via Twitter.
3AC liquidators are unhappy with co-founder’s lack of response
An active filing made with the New York bankruptcy court shows that Kyle Davies, 3AC co-founder, is obstructing and ignoring requests from the liquidation team of 3AC. Additionally, according to representatives from the advisory firm Teneo, Davies has been shamelessly soliciting investors for a new cryptocurrency venture. On 5 January 2023, the Twitter account “3acliquidation” served subpoenas to the 3AC founders.
The lawyers and two Teneo representatives noted in the filing on Tuesday evening that the liquidators are still waiting for a reply from Davies. While the attorneys say that 3AC founders have started a new crypto startup, the liquidators add that Davies has been highly active on social media. “He has not even attempted to contact the undersigned attorney to express an objection or concern with the subpoena issues. It is not a question of partial compliance, but of no compliance”, the filing reads.
The liquidators added:
He is clearly aware of the subpoena… he has been tagged in 41 replies, 64 retweets… yet, as soon as he can, he has chosen to ignore his responsibilities at Three Arrows. Meanwhile, Mr. Davies continues to post on his Twitter account and blatantly ignore the Court’s orders as he continues to frustrate efforts by foreign representatives to gain access to data and documents.
The Liquidators expressed dissatisfaction with their inability to reach 3AC co-founders Su Zhu and Davies, which is why chapter proceedings were initiated. At the time Zhu and Davies said that they have been in contact with all relevant authorities “since day one.” However, 3AC’s liquidators complained shortly after 3AC filed for chapter 15 protection to ensure that the company’s assets stay within the United States.
According to an interview with CNBC and research on Davies, in November 2022 it is believed that he was in Bali. During the interview, CNBC’s Becky Quick asked Davies if he was “in Bali because Indonesia is one of the seven countries that will not extradite you to the United States.” Zhu’s location is thought to be either Singapore or the United Arab Emirates (UAE), however the exact location of 3AC co-founders is unknown at this time.
What do you think about the allegations against Kyle Davies in the ongoing legal battle over Three Arrows Capital? Please share your thoughts in the comments below.
Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me.
I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.