Judge Orders 3AC Founder to Submit Financial Documents
Martin Glenn, the judge overseeing the bankruptcy case of Three Arrows Capital, has once again ordered the co-founder of the company Kyle Davies to surrender financial records. Glenn has given Davies 14 days to submit the documents of his now-bankrupt crypto hedge fund. He risks being held in contempt in case he defies the orders.
Davies has been accused severally by the liquidators of withholding information. Last month, they filed a motion in an effort to compel his cooperation, claiming that he had been ‘without shame’ raising funds to start a new company.
Three Arrows Capital, popularly known as 3AC, is a Singapore-based company that was liquidated last June after enduring heavy losses stemming from the collapse of algorithmic stablecoin TerraUSD the previous month.
Davies confirmed that the crypto hedge fund had lost roughly $200 million from TerraUSD’s crash.
After the 3AC filed for bankruptcy Davies and the other co-founder SuZhu disappeared from Social media for over four months and resurfaced when crypto exchange FTX started encountering its own troubles.
Court Serves 3AC Co-Founders With a Subpoena via Twitter
With the two founders being active again on Twitter, the 3AC liquidators asked the court to send a subpoena to the pair through the social media platform, arguing that attempts to reach Davies via conventional means had been futile. The court granted the request, which led to the co-founders getting served with a subpoena via a tweet in early January.
However, last month, the judge noted that Davies had been online but never bothered to respond to the court orders. Just a week ago, he posted a photo of himself on Twitter with the caption, “The world would be peaceful if we spent more time in Bali.”
3AC Co-Founders Forms New Company
The 3AC co-founders are now planning to launch Open Exchange (OPNX). This new project will support trading for bankruptcy claims.
Based on the information on OPNX’s website, it looks like the company will only offer trading for claims of funds stuck in Genesis, Celsius, BlockFi, Three Arrows Capital, and FTX. However, OPNX said on its official Twitter account it would add more services along the way.
It is worth highlighting that US residents are restricted from accessing the platform.