A federal judge who is responsible for Three Arrows Capital’s (3AC) bankruptcy proceedings has given his approval for subpoenas to be delivered to 3AC’s former leadership, including co-founders Su Zhu and Kyle Davies, as reported by Cointelegraph.
According to Cointelegraph, the subpoenas stated the need for subpoenas to release any “recorded information, including books, documents, records, and papers,” in their custody that relates to the firm’s property or financial affairs. It is believed that the the hedge fund, which had a reported valuation worth $10 billion, filed for Chapter 15 bankruptcy on July 1, 2022, with its problems relating to excess leverage and the collapse of Terra Luna (LUNA), known as Terra Classic (LUNC), and its algorithmic stablecoin having the former name TerraUSD (UST).
On the basis of information by Cointelegraph, the latest order for subpoenas will need participants to give up all kinds of account information, seed phrases, and private keys for its digital and fiat assets, securities and unregistered shares’ information, and accounts kept on decentralised and centralised exchanges, along with any other tangible or intangible assets. Reportedly, the order includes hedge fund attorney Hannah Terhune, directors Mark Dubois and Cheuk Yao Pau, and Kelly Chan, wife of co-founder Kelly Davis, as “discovery targets,” alongside trading desk company Tai Ping Shan Limited, venture capital firm DeFiance Capital, 3AC-backed non-fungible token (NFT) fund Starry Night Capital, along with other associates.
Moreover, Cointelegraph noted that individuals involved within the subpoena are needed to comply within two weeks unless otherwise agreed with the parties. Rumours have been there that Zhu is residing in Dubai while Davies is residing on the Indonesian island of Bali. Reportedly, both have given their social media comments around the collapse of FTX and Alameda Research.
(With insights from Cointelegraph)