Su Zhu and Kyle Davies, the founders of Three Arrows Capital or 3AC, were subpoenaed on Twitter on Jan. 5 after Singapore officials granted authorization to the liquidators in response to a United States bankruptcy court order.
Liquidators hope to gain access to account information, seed phrases, and private keys for 3AC's digital and fiat assets, as well as information about securities and unregistered shares, and any accounts held on centralized or decentralized exchanges, as well as any other tangible or intangible assets, through the move.
In recent months, the liquidators' lawyers have repeatedly failed to communicate with the founders.
"A communication protocol was agreed between the liquidators and founders but has not yielded satisfactory cooperation," according to a hearing presentation last month.
As a U.S. citizen, Davies' subpoena order was approved by the Southern District of New York Bankruptcy Court, while the orders for both co-founders were granted by Singaporean courts, according to a spokesperson for advising firm Teneo.
Regardless of whether the information is held by Su and Davies directly, their agents, representatives, employees, or investigators, or by any other legal or non-legal entities controlled by or affiliated with the two executives, the subpoena demanded that they turn over all documents that they are in possession of.
The subpoena requests that the co-founders "state the date and nature of the document and explain why the document is unavailable" if the requested papers are no longer in their possession, custody, or control.
Liquidators announced on Twitter in December 2022 that they had attempted to subpoena the founders. Due to the unknown whereabouts of its founders, Three Arrows Capital has had difficulties in its bankruptcy proceedings in recent months.
The hedge fund's liquidators have alleged that the founders are in Indonesia and the United Arab Emirates, where international court judgments are difficult to enforce.
Furthermore, the court has questioned the founders' citizenship and location, which could affect the court's capacity to exercise personal jurisdiction over them.
The hedge fund had a net worth of $10 billion at its peak, but it declared bankruptcy on July 1 under Chapter 15.
Davies and Zhu disappeared for a bit from social media.
In November, not long after cryptocurrency exchange FTX declared bankruptcy, both of the 3AC founders reappeared. Zhu claims that one of the key reasons they ended their silence was to claim that FTX founder Sam Bankman-Fried's company had been actively looking for 3AC roles.
