The bankruptcy court has authorized the issuance of subpoenas to the co-founders of Three Arrows Capitals, Kyle Davies and Su Zhu. This also applies to all leaders of the crypto hedge fund.
Liquidators now have permission to demand documents, communication, and financial records related to the firm since 2012, when it was founded. The judge presiding over the bankruptcy proceedings signed the order to authorize the subpoenas.
According to the court release,
“The Foreign Representatives and their agents are authorized to serve subpoenas for the production of documents and testimony upon the Founders, the Investment Managers, and any other persons or entities that the Foreign Representatives reasonably determine during the course of their investigation may have information relevant to the Debtor, its affairs, or its assets.”
The court stated any subpoenas served following this order must be without prejudice to the recipient’s right to object according to the laws and procedural rules. Also, liquidators who subpoena must comply with it not later than fourteen days after its issuance.
Zhu and Davies disappeared for a while after the collapse of 3AC, with their whereabouts unknown. However, with the failure of FTX, they both resurfaced online and became vocal again.
Sam Bankman-Fried was critical of Terra’s collapse, stating that the protocol would not have failed if it had been transparent. However, such was his fate after discovering that a large portion of the balance sheet at Alameda Research included the FTX token and was illiquid.
Yesterday, Zhu stated how clear it was that SBF sold and shorted all clients’ Bitcoin and Ethereum for Solana and FTX tokens. He noted that it was not just a crime against the clients but against crypto.
