Liquidators found a unique way to subpoena Three Arrows Capital co-founders Kyle Davies and Su Zhu, issuing them a copy of the subpoena via Twitter.
This comes after both founders have been notoriously difficult to get hold of, despite being extremely active on Twitter.
A Twitter Subpoena
Zhu Su and Kyle Davies, the co-founders of Three Arrows Capital (3AC), were served with a subpoena through Twitter on the 5th of January. Liquidators were granted permission to serve the subpoena from the Singaporean authorities following a United States bankruptcy court order. Lawyers have repeatedly tried and failed to engage with Su and Davies, who failed to adhere to a stipulated communications protocol. According to a presentation held on the 2nd of December,
“A communication protocol was agreed between the liquidators and founders but has not yielded satisfactory cooperation.”
The official Twitter account of the court-appointed Joint Liquidators of Three Arrows Capital uploaded the subpoenas.
“@zhusu and @KyleLDavies jpg copies of orders made by the Supreme Court of Singapore against Mr. Zhu, Mr. Davies, and Three Arrows Capital Pte. Ltd. are attached to this tweet by way of service. An unredacted copy of the order was served via email and can be provided upon request.”
Key Information Sought
With the subpoena’s help, the liquidators hope to access important information such as account information, seed phrases, and private keys of Three Arrows Capital’s fiat and digital assets. It also seeks to obtain information about securities, unregistered shares, any accounts held on other centralized and decentralized exchanges, and other tangible and intangible assets.
The subpoena also directed Su and Davies to furnish all documents that were available with them.
“Furnish all documents available to you regardless of whether this information is possessed directly by you, your agents, representatives, employees, or investigators, or by any other legal or non-legal entities controlled by or in any manner presently or precisely affiliated with you.”
Furthermore, if the co-founders did not have possession of certain documents, the subpoena directed them to disclose the date and nature of the documents in question and explain why it was not available with them.
Founders Nowhere To Be Found
Liquidators had announced back in December 2022 that they were planning to subpoena the founders via Twitter. This is because Three Arrows Capital’s bankruptcy process has been facing considerable hurdles due to the whereabouts of its founders. Liquidators have speculated that the duo was somewhere in Indonesia and the United Arab Emirates (UAE), where it is highly difficult to enforce court orders. Furthermore, the court has also called into question the citizenship of the founders of 3AC, which could potentially impact the court’s ability to exercise jurisdiction.
3AC was ordered to liquidate in June following speculation it had endured heavy losses due to the Terra collapse. It was later revealed that the company had lost $200 million on its TerraUSD position, and creditors margin called the company, meaning they had to stump up more capital. The final blow came when Voyager Digital, itself undergoing bankruptcy proceedings, issued the company a default notice of $600 million. By July, reports revealed that 3AC’s Singapore office had been abandoned, with the founders nowhere to be found. Around the same time, Zhu tweeted, criticizing liquidators for missing a deadline to claim StarkWare tokens, before going dark on social media.
“Sadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.