Kyle Davies, co-founder of bankrupt crypto hedge fund Three Arrows Capital (3AC), has been ordered to respond to the subpoena issued to him in January or risks being held in contempt of court.
The summons of January 5 was issued to Davies via Twitter by a New York bankruptcy court, instruct Davies to provide 3AC liquidators with documents within 14 days, such as seed phrases and private keys, as well as company communications and other company-related documents.
After hearing nothing from Davies, United States Bankruptcy Judge Martin Glenn granted a motion to compel on March 22, noting that Davies can appear and challenge the arguments put forward by the 3AC liquidators, "or he can stop appearing as he has hitherto and, frankly, take his chances."
There would be peace on earth if we all spent more time in Bali pic.twitter.com/OgA35g81BE
โKyle Davies (@KyleLDavies) March 23, 2023
A motion to compel is a legal request that the court compel one of the parties to provide evidence to the party who filed the motion.
People found in contempt of court during civil proceedings are usually fined, but can also be jailed. Civil contempt is intended to coerce compliance, so the severity of the penalties may increase until the order is executed.
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The current whereabouts of Kyle Davies and 3AC co-founder Su Zhu are unknown.
Davies' most recent tweet from March 23 appears to show a photograph of him in baliHowever, an earlier tweet from the same day shows him standing with Su Zhu and another person in Bahrain.
This is not Dubai. This is close to the World Trade Center in Bahrain pic.twitter.com/owVPctfINA
โ Silv (@SilvXBT) March 22, 2023
However, Su Zhu also shared a tweet with a recognizable landmark in the background on the same day, suggesting that he may be or may have recently been in Dubai.
โ Zhu Su Zhu Su (@zhusu) March 22, 2023
According to lawyers for the 3AC liquidators, Davies "chose to disregard his duties to Three Arrows."
Meanwhile, the 3AC pair partnered with CoinFLEX to launch OPNX, a marketplace intended to enable claims in bankruptcy proceedings of crypto companies to be bought and sold.
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