3AC Co-Founder Refuses to Cooperate With Liquidators, Ignores Subpoena Request

Liquidators have criticized 3AC co-founder Kyle L. Davies for failing to comply with a subpoena. They have requested a new order with a deadline of March 16.

Liquidators for bankrupt crypto hedge fund Three Arrows Capital (3AC) have called out co-founder Kyle L. Davies for failing to cooperate. The court filing, published on Feb. 7, notes that Davies was expected to comply with the subpoena by Jan. 26, 2023.

However, the liquidators state that the co-founder has not done so and has harshly criticized Davies’ behavior. The filing reads,

“… 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. As such, the Foreign Representatives respectfully request entry of an order requiring Mr. Davies to comply with the subpoena within fourteen (14) days of the Hearing.”

The liquidators are now calling for a new order to push the compliance deadline to March 16. Davies has not yet commented on the development.

3AC owes about $3 billion to its creditors. It was one of the first companies in a long list to collapse last year. The company continues to be in the news for various reasons, with co-founder Zu Shu recently alleging that Digital Currency Group and FTX conspired to attack LUNA and stETH.

Davies Subpoenaed on Twitter

The liquidation case of 3AC remains at the center of attention, given the outstanding sum. Davies was subpoenaed on Twitter because of his activity on the platform.

Those in the crypto industry have called for the founders to accept responsibility instead of tweeting about crypto projects. The developments in the case don’t seem to deter them, however, as they are keen on other projects.

Subpoena Issues to Kyle Davies | Source: 3AC Liquidation Twitter

3AC Seeking $25M for a New Exchange

The founders are now working on a new crypto exchange called GTX. They are looking to raise $25 million and are collaborating with the founders of CoinFlex. It drew a lot of attention, given that 3AC is in the middle of a massive liquidation process.

Meanwhile, creditors are growing frustrated with the bankruptcy process. Liquidators have seized at least $35.6 million in fiat currencies and managed to obtain an account with over 60 crypto assets.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

Bookmark (0)

Related Posts

Matter Labs Launches First Ever Permissionless zkEVM Mainnet

Matter Labs launches first permissionless zk-rollup that has registered interest from the likes of Uniswap and Metamask.
The network will remain in Alpha while Matter Labs runs security audits.
Matter Labs hopes to change its prover to something less hardware-intensive.

Bookmark (0)

How Crypto Fugitives Evade the Authorities

Police arrested Do Kwon and a second individual at Montenegrin airport Thursday.
Kwon had disappeared for ten months. We speculate on some of the ways he did it.
BeInCrypto does not endorse any criminal behavior.

Bookmark (0)

Bitcoin vs. Hyperinflation

Investigating the role of Bitcoin in economies such as Zimbabwe, Venezuela, and Argentina, where hyperinflation has wreaked havoc.
Understanding the challenges and drawbacks Bitcoin faces, including regulatory hurdles and environmental concerns.
Exploring the future of global finance, as central banks consider the development of their own digital currencies.

Bookmark (0)

Solana (SOL) Price Recovers, but Is It Gearing up for a Bigger Move?

Solana (SOL) price broke out from a descending resistance line.
It is facing resistance at $22.90.
Solana (SOL) might have completed an A-B-C correction.

Bookmark (0)

This Week in Crypto News: Balaji’s $1M Bitcoin Bet, Big Brother CBDCs, and India Conquers Crypto

Balaji Srinsavan, the former tech chief at Coinbase, has high hopes for Bitcoin (BTC).
The Federal Reserve has printed $300 billion to bail out banks.
And Governor Ron DeSantis bans CBDCs in Florida.

Bookmark (0)

Which venues will list the upcoming ARB token dropping on March 23?

Major crypto platforms are gearing up for the upcoming ARB token listing on March 23.

Bookmark (0)

Leave a Reply

Your email address will not be published. Required fields are marked *