<\/p>\n
A federal judge overseeing Three Arrows Capital\u2019s (3AC\u2019s) bankruptcy proceedings has signed an order approving subpoenas to be delivered to 3AC\u2019s former leadership, including co-founders Su Zhu and Kyle Davies.<\/p>\n
The subpoenas require the founders to give up any \u201crecorded information, including books, documents, records, and papers\u201d in their custody that relates to the firm\u2019s property or financial affairs. <\/p>\n
The infamous hedge fund, worth $10 billion at its peak, filed for Chapter 15 bankruptcy on Jul. 1 with its troubles tied up in too much leverage and the collapse of Terra Luna (LUNA), known now as Terra Classic (LUNC), and its algorithmic stablecoin formerly known as TerraUSD (UST).<\/p>\n
Since then, the liquidators \u2014 advisory firm Teneo \u2014 have been trying to hunt down the firm\u2019s assets and pin down the 3AC’s co-founders. <\/p>\n
The latest order allowing for the subpoenas will require recipients to give up any and all account information, seed phrases, and private keys for its digital and fiat assets, details about the securities and unregistered shares, and any accounts held on centralized or decentralized exchanges, along with any other tangible or intangible assets.<\/p>\n
The order also labels hedge fund attorney Hannah Terhune, directors Mark Dubois and Cheuk Yao Pau, and Kelly Chen \u2014 wife of co-founder Kyle Davies \u2014 as \u201cdiscovery targets\u201d, alongside trading desk company Tai Ping Shan Limited, venture capital firm DeFiance Capital, 3AC-backed NFT fund Starry Night Capital and all of their associates. <\/p>\n
Related: <\/em><\/strong>Legal team for 3AC liquidators blast founders for shifting blame to FTX, media blitz amid bankruptcy<\/em><\/strong><\/p>\n Any individuals served with the subpoena are required to comply within 14 days unless otherwise agreed with the parties. <\/p>\n At the time of writing there has been no solid information on the whereabouts of either Zhu or Davies, it\u2019s rumored Zhu is residing in Dubai while Davies is residing<\/a> on the Indonesian island of Bali. Both have been active on social media commenting on developments relating to the collapse of FTX and Alameda research. <\/p>\n Meanwhile, self-proclaimed Terra whistleblower FatMan has made new claims on Twitter that it was the actions of Terraform Labs itself that led to the de-pegging of TerraUSD (UST), now TerraClassicUSD (USTC), in May \u2014 as opposed to a concerted attack.<\/p>\n That being said, not everyone is convinced about the theory or that the information is new. <\/p>\n In a Dec. 6 Twitter thread FatMan cited \u201cbombshell data\u201d from anonymous researcher Cycle_22 that purportedly discovered two trading wallets which are verified to be owned by Terraform Labs had \u201cdumped\u201d $450 million worth of UST on the open market in the three weeks leading up to the de-peg, explaining: <\/p>\n \u201cTFL has been perpetrating the narrative that UST was \u2018attacked.\u2019 This is a false flag.\u201d<\/p><\/blockquote>\n \u201cIn reality, TFL themselves weakened the Curve pool by irresponsibly dumping a massive amount of UST in a short timeframe. This reduced liquidity and severely weakened the peg,” FatMan said.<\/p>\n December 6, 2022: New on-chain data indicates TFL sold $450m in UST in the weeks leading up to the UST collapse, greatly exacerbating if not directly causing its demise. https:\/\/t.co\/ijPMo0XqVt<\/p>\nClaim: Terraform dumped $450M UST before crash<\/h3>\n
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