The 3AC co founder can answer subpoena or ‘take his chances’ says US judge
Kyle Davies, one of the founders of a now bankrupt crypto hedge fund called “Three Arrows Capital”, has been told to respond to a subpoena issued to him in January. If he fails to do so, he may be held in contempt of court.
On January 5th, a subpoena was sent to Davies through Twitter, which was approved by a New York bankruptcy court. The subpoena required Davies to provide 3AC’s liquidators with various documents, such as seed phrases, private keys, company communications, and other company-related documents within two weeks.
Davies, who was expected to contest the arguments made by 3AC liquidators, has failed to appear in court. As a result, the United States Bankruptcy Judge Martin Glenn granted a motion to compel on March 22, giving Davies the option to either appear in court and defend his case or take his chances by not showing up.
A motion to compel is a lawful appeal to the court for one party to provide evidence to the other party. When individuals are found in contempt of court during civil proceedings, they may be fined or even imprisoned. The objective of civil contempt is to ensure compliance, and the severity of penalties can escalate until the order is fulfilled.
Kyle Davies and Su Zhu, both founders of 3AC, whereabouts are currently unknown although the pair have put several photos up on social media placing them at different places on the planet