3AC Founders Served Subpoenas over Twitter

As per reports, 3AC founders Zhu Su & Kyle Davies were recently served with a subpoena on Twitter on Jan. 5 after the liquidators were granted approval from Singaporean authorities.

In Davies' case, the Southern District of New York Bankruptcy Court issued the subpoena order since he is a US citizen. Meanwhile, Singapore's courts granted the order to both co-founders, explained a spokesperson from advisory firm Teneo.

As previously reported, liquidators' lawyers have repeatedly refused to meet with the founders. According to a hearing presentation on December 2, “a communication protocol was agreed on between the liquidators and founders but has not resulted in satisfactory cooperation.”

With the move, liquidators hope to gain access to account information, seed phrases, and private keys for 3AC's digital and fiat assets, along with any other tangible or intangible assets. The hedge fund had a net worth of $10 billion at its peak, but it filed bankruptcy on July 1 under Chapter 15.

They have been directed to produce all documents in their possession (whether held directly by them or by a third party) and to allow an inspection of the property at a certain day and time.

If the needed documents are no longer in their possession, the subpoena asks them to indicate the date and nature of the document, as well as explain why it is unavailable.

In December 2022, liquidators announced that they had attempted to subpoena the founders via Twitter. Due to the unknown whereabouts of its founders, 3AC has had difficulties in its bankruptcy process in recent months.

The hedge fund's liquidators have alleged that the founders are in Indonesia and the UAE, where international court judgments are difficult to enforce. 

Furthermore, the court has questioned the founders' citizenship and location, which could affect the court's ability to exercise personal jurisdiction over them.

Read also: Huobi Global's Trading Volume Drops Following Reports of Internal Conflicts