According to the court filing, “All the while, Mr. Davies has continued to post on his Twitter account, openly ignoring the Court’s directives and enjoying media attention while he continues to thwart efforts by the Foreign Representatives to gain access to documents and information.”
Kyle Davies, the co-founder of Three Arrows Capital, was accused of dodging subpoenas from the court while “shamelessly” gathering funds for a new crypto venture, GTX.
At the beginning of January, 3AC’s liquidators Russel Crumler and Christoper Farmer had sent copies of court-approved subpoenas to Kyle Davies and Su Zhu.
A recent court filing revealed that the bankrupt hedge fund’s co-founders refused to cooperate with the liquidators. It alleged that Davies obstructed a probe into 3AC by repeatedly ignoring the court’s orders.
The filing also stated that 3AC’s co-founders have been gathering funds for GTX, a new crypto exchange, adding,
“Shamelessly, while ducking his obligations to his failed company, Mr. Davies has been recently active in an effort to raise tens of millions to start a new crypto exchange called GTX.”
The liquidators’ claims were synonymous with earlier reports about Davies and Zhu seeking to raise $25M for a new crypto venture.
The next court hearing in the 3AC bankruptcy case is scheduled on March 2, 2023. The liquidators are expected to compel Davies to accept the subpoena during this hearing.
