By George Ward
The co-founder of 3AC, Kyle L. Davies, has been slammed by his company’s liquidators for failing to cooperate in the ongoing bankruptcy case against the crypto hedge fund. Thus, the liquidators have requested a new subpoena with a March 16 deadline.
Failing To Cooperate
Liquidators of Three Arrows Capita (3AC), the bankrupt crypto hedge fund, have criticized the firm’s co-founder, Kyle Davies, for refusing to comply with the subpoena. According to the court filing published on February 7, Davies was expected to abide by the court order by January 26.
According to the liquidators, Davies failed to do so even though he has been actively posting on its Twitter handle while ignoring the court’s order and enjoying the media’s attention.
The liquidator’s statement further reads,
“The 3AC executive has continued to frustrate the efforts of the foreign representatives to access documents and information relating to the insolvency of the crypto lender. As a result, the group has requested an order mandating Mr. Davies to comply with the subpoena within 14 days.”
Thus, the liquidators are calling for another order to move the compliance dateline to March 16. Meanwhile, the co-founder is yet to comment on the new development.
According to reports, the crypto hedge fund platform owes close to $3 billion to creditors and is one of the digital asset firms that have crumbled over the past year. Despite its bankruptcy case, 3AC has been in the spotlight for several reasons after Zu Shu, another co-founder, alleged that Digital Currency Group (DCG) and FTX are the masterminds behind an attempt to crumble LUNA and stETH.
Furthermore, the Three Arrows Capital Liquidation case has been the center of attention in the crypto community, given the significant sum involved. Davies has since been subpoenaed on Twitter due to his unacceptable activities on the social media platform.
Embattled Founders Eye New Exchange
Many crypto players have repeatedly called on both founders to accept responsibility and desist from tweeting about upcoming crypto projects. However, the ongoing bankruptcy case does not deter them as they continue to discuss other crypto projects on Twitter.
According to reports making the rounds, the 3AC founders are currently working on unveiling a new crypto trading platform named GTX. As a result, they seek to raise $25 million in collaboration with executives at CoinFlex.
As expected, the move drew the crypto community’s attention since 3AC is battling a liquidity problem. On the other hand, 3AC’s creditors are becoming frustrated with the ongoing bankruptcy process considering that liquidators have seized close to $35.6 million in the platform’s custody.
Sadly, the case has no end in sight, considering the reluctance of 3AC’s co-founders to cooperate with the liquidators.