{"id":14549,"date":"2022-10-18T04:36:51","date_gmt":"2022-10-18T04:36:51","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/3ac-liquidators-seek-alternative-means-to-subpoena-missing-founders\/"},"modified":"2022-10-18T04:36:53","modified_gmt":"2022-10-18T04:36:53","slug":"3ac-liquidators-seek-alternative-means-to-subpoena-missing-founders","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/3ac-liquidators-seek-alternative-means-to-subpoena-missing-founders\/","title":{"rendered":"3AC liquidators seek \u2018alternative means\u2019 to subpoena missing founders"},"content":{"rendered":"

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Liquidators for Three Arrows capital (3AC) have asked a U.S. court to grant them permission to subpoena the\u00a0embattled crypto hedge fund’s founders through \u201calternative means.\u201d<\/p>\n

To this date, the whereabouts of Three Arrow Capital founders Su Zhu and Kyle Davies remains unknown, with some accusing the duo of being on the run. <\/p>\n

In a court motion filed to the United States Bankruptcy Court Southern District of New York on Oct. 14, advisory firm Teneo claimed that standard methods to contact the duo have failed as the \u201cFounders\u2019 whereabouts remain unknown.\u201d<\/p>\n

It also said that the request for Advocatus Law LLP, the \u201cSingapore counsel purporting to represent the Founders\u201d has declined to accept the subpoenas on behalf of the pair, adding that the founders have also \u201cyet to offer any forthright cooperation\u201d having \u201conly made themselves directly available for two brief discussions\u201d since proceedings began.<\/p>\n

As a result, the liquidators had asked the court to use \u201calternative means\u201d to serve subpoenas, which is understood to include reaching out to the duo on their Twitter accounts and email addresses.<\/p>\n

With the filing of this new motion, liquidators say they seek the \u201cauthority to serve subpoenas for the production of documents and testimony on the Founders, the Investment Managers, and third parties.\u201d <\/p>\n

Meanwhile, an Oct.18 report from Bloomberg claims U.S. regulators are launching a probe into possible legal violations by the Singapore-based hedge fund.<\/p>\n

Bloomberg alleges the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) are now investigating whether 3AC misled investors and failed to register with the appropriate agencies. <\/p>\n

Both Zhu and Davies have been keeping a low profile in the wake of 3AC\u2019s insolvency since June.\u00a0<\/p>\n

3AC\u00a0filed for a Chapter 15 bankruptcy on Jul. 1 in a New York court; however, Zhu and Davies\u2019 current location has never been disclosed.<\/p>\n

Zhu resurfaced briefly on Twitter in July when he accused liquidators of \u2018baiting\u2019 them for information to use in court, with Davies retweeting the post, but the duo has gone radio silent again since then. <\/p>\n

3AC managed billions in assets at one point but became another crypto firm to go bankrupt in the bear market after the broad sell-off in digital assets spurred in part by the collapse of the Terra blockchain and alleged poor management decisions on their part. <\/p>\n