The liquidators of Three Arrows Capital (3AC) want to subpoena the bankrupted hedge fund’s founders through alternative means. They highlighted that to date the whereabouts of 3AC’s founders – Su Zhu and Kyle Davies remain unknown.
Teneo, the advisory firm, in a court motion filed to the US Bankruptcy Court Southern District of New York on October 14 claimed that standard methods to contact the hedge fund’s founders failed as their whereabouts remain unknown. They said the request for Advocatus Law LLP declined to accept the subpoenas on behalf of the pair. Moreover, 3AC’s founders have yet to offer any forthright cooperation having only made themselves directly available for two brief discussions since the proceedings began.
As such, the liquidators want to use alternative means to serve subpoenas, which includes reaching out to the duo on their Twitter accounts and email addresses. They are seeking authority to serve subpoenas for the production of documents and testimony on the founders, the investment managers and third parties. Meanwhile, regulators are looking into the possible legal violations by 3AC. The Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) are probing whether the Singapore-based firm misled investors and failed to register with the appropriate agencies.
Three Arrows Capital filed for Chapter 15 bankruptcy on July 1. The firm which used to manage billions in assets fell into bankruptcy in the 2022 bear market because of the collapse of Terra, as well as poor management decisions on its part.