Kyle Davies, co-founder of bankrupt crypto hedge fund Three Arrows Capital (3AC), was ordered to respond to the subpoena issued to him in January or face trial for contempt of court.
The January 5 subpoena was issued to Davies via Twitter by a New York bankruptcy court, instruct Davies will provide 3AC liquidators with documents within 14 days, such as key phrases and private keys, as well as corporate communications and other company-related documents.
After failing to hear Davies, US Bankruptcy Judge Martin Glenn granted a motion to compel on March 22, noting that Davies can appear and challenge the arguments made by 3AC’s liquidators, “or he can not appear as he has thus far and, frankly, take a chance.”
There would be peace on Earth if we all spent more time in Bali pic.twitter.com/OgA35g81BE
— Kyle Davies (@KyleLDavies) March 23, 2023
A motion to compel is a legal request that the court will compel a party to provide evidence to the party who brought the motion.
Those found in contempt of court in civil proceedings are usually subject to a fine, but can also be imprisoned. The purpose of civil contempt is to compel compliance, so the severity of the penalties may increase until the order is carried out.
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The current fate of Kyle Davies and his 3AC co-founder Su Zhu remains unknown.
Davies’ most recent tweet, on March 23, appears to show a photo 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. It’s near the World Trade Center in Bahrain pic.twitter.com/owVPctfINA
— Silv (@SilvXBT) March 22, 2023
Su Zhu also shared a tweet with a recognizable landmark in the background on the same day, suggesting he may be or have recently been in Dubai.
— Zhu Su 朱溯 (@zhusu) March 22, 2023
According to lawyers for 3AC’s liquidators, Davies “chose to ignore his duties to Three Arrows.”
Meanwhile, the 3AC pair has partnered with CoinFLEX to launch OPNX, a marketplace aimed at enabling the buying and selling of claims in bankruptcy proceedings of crypto firms.
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