Three Arrows Capital founders subpoenaed over Twitter by liquidators after seizing company’s $35 million
- Three Arrows Capital liquidators, led by Teneo, are seeking documents related to the company’s accounts, digital assets and other papers.
- US and Singapore courts approved the unusual method of subpoena via Twitter following resistance to cooperation.
- Teneo made its second biggest move in the Three Arrows Capital liquidation after seizing its $35 million from Singapore banks last month.
Three Arrows Capital collapsing and filing for bankruptcy was the harbinger of the first contagion observed by the crypto market in 2022. This triggered one of the biggest crashes, which the market still hasn’t recovered from before being impacted by FTX’s collapse.
The difference is FTX’s founder Sam Bankman-Fried was significantly easier to find than Three Arrows Capital’s founders.
Three Arrows Capital founders found on Twitter
Three Arrows Capital (3AC) co-founders Kyle Davies and Su Zhu received subpoenas from the firm’s court-appointed liquidators, Teneo, in a pretty unconventional manner. Sending via Twitter, 3AC liquidators targeted Davies, who, despite being on the run along with Zhu, remained quite active on the social media platform.
@KyleLDavies jpg copies of the subpoena are attached to this tweet by way of service. An unredacted copy of the subpoena was served via email and can be provided upon request. pic.twitter.com/XAYzQ4Oveo
— 3ACLiquidation (@3ACLiq) January 5, 2023
Due to a lack of cooperation by Davies and Zhu, the liquidators have been forced to take such measures. Through the subpoenas, Teneo seeks to gain access to documentation pertaining to 3AC’s accounts, digital assets and any other related records or papers. Commenting on the same, the liquidator stated,
“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 liquidators followed this up by reassuring creditors that Teneo is focused on advancing the liquidation process in order to maximize asset recoveries for them.
Three Arrows Capital funds seized
The now-bankrupt cryptocurrency hedge fund, Three Arrows Capital, filed its bankruptcy back in June 2022, and its founders have been at large since. This led the firm’s liquidators to take charge of the crypto company’s assets.
Three Arrow Capital’s $35.6 million worth of fiat currencies were seized from Singapore banks by Teneo. This was accompanied by the forced redemption of $2.751 million worth of investments last month.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
