For Ignoring a Subpoena Via Twitter, Davies Castigated of Three ArrowsTable of Contents
For Ignoring a Subpoena Via Twitter, Davies Castigated of Three Arrows
By CoinUnited
9 Feb 2023
After receiving a subpoena on Twitter last month, Kyle L. Davies, co-founder of the insolvent crypto hedge fund Three Arrows Capital, reportedly refused to comply with liquidators of the bankrupt firm's estate.
Three Arrows' liquidators claimed that Davies had ignored a January deadline to assist with the estate and sought a fresh injunction compelling him to do so by March 16.
The liquidators claimed in a filing with the US Bankruptcy Court for the Southern District of New York on February 7 that Davies continued to post on his Twitter account after being served with the subpoena on January 5, "openly ignoring the Court's directives and enjoying media attention while he continues to thwart efforts" to obtain documents and information on the case.
As a result of a string of disastrously bad crypto bets, Three Arrows was forced to close shop in June of last year, and its co-founders, Davies and Su Zhu, disappeared into obscurity as the company filed for bankruptcy in New York and the British Virgin Islands. Roughly $3 billion is how much debt Three Arrows has to its creditors.
A message to Davies seeking comment on the filing was not immediately returned.
"He is, without question, aware of the Subpoena — having been tagged in 41 responses and 64 retweets — and has, once again, decided to neglect his duty to Three Arrows," the liquidators said, giving proof to the court of Davies' tweets and media pieces mentioning him.
Two counsel for the estate, Russell Crumpler and Christopher Farmer, argued in the petition that Davies and Zhu's recent attempt to raise tens of millions of dollars for a new crypto exchange was more proof of his neglect of his fiduciary obligations to the corporation.
They went on to say that "this is not a case of limited compliance, but of no compliance at all."
The liquidators claimed in a filing with the US Bankruptcy Court for the Southern District of New York on February 7 that Davies had continued to post on his Twitter account after being served with the subpoena on January 5, "openly ignoring the Court's directives and enjoying media attention while he continues to thwart efforts" to obtain access to documents and information about the case.
In June of last year, after a string of disastrously bad crypto bets, Three Arrows filed for bankruptcy in New York and the British Virgin Islands and promptly ceased shop. Co-founders Davies and Su Zhu went into hiding. About $3 billion is what Three Arrows owes its creditors.
A message to Davies seeking comment on the file went unanswered for some time.
"He is, without question, aware of the Subpoena — having been tagged in 41 responses and 64 retweets — and has, once again, decided to neglect his duty to Three Arrows," the liquidators said, giving proof to the court of Davies' tweets and media pieces mentioning him.
Two counsel for the estate, Russell Crumpler and Christopher Farmer, claimed in the lawsuit that Davies and Zhu's recent attempt to raise tens of millions of dollars for a new crypto exchange was more proof of his evasion of his fiduciary obligations to the company.
They went on to say that "this is not a case of limited compliance, but of no compliance at all."
Three Arrows' liquidators claimed that Davies had ignored a January deadline to assist with the estate and sought a fresh injunction compelling him to do so by March 16.
The liquidators claimed in a filing with the US Bankruptcy Court for the Southern District of New York on February 7 that Davies continued to post on his Twitter account after being served with the subpoena on January 5, "openly ignoring the Court's directives and enjoying media attention while he continues to thwart efforts" to obtain documents and information on the case.
As a result of a string of disastrously bad crypto bets, Three Arrows was forced to close shop in June of last year, and its co-founders, Davies and Su Zhu, disappeared into obscurity as the company filed for bankruptcy in New York and the British Virgin Islands. Roughly $3 billion is how much debt Three Arrows has to its creditors.
A message to Davies seeking comment on the filing was not immediately returned.
"He is, without question, aware of the Subpoena — having been tagged in 41 responses and 64 retweets — and has, once again, decided to neglect his duty to Three Arrows," the liquidators said, giving proof to the court of Davies' tweets and media pieces mentioning him.
Two counsel for the estate, Russell Crumpler and Christopher Farmer, argued in the petition that Davies and Zhu's recent attempt to raise tens of millions of dollars for a new crypto exchange was more proof of his neglect of his fiduciary obligations to the corporation.
They went on to say that "this is not a case of limited compliance, but of no compliance at all."
The liquidators claimed in a filing with the US Bankruptcy Court for the Southern District of New York on February 7 that Davies had continued to post on his Twitter account after being served with the subpoena on January 5, "openly ignoring the Court's directives and enjoying media attention while he continues to thwart efforts" to obtain access to documents and information about the case.
In June of last year, after a string of disastrously bad crypto bets, Three Arrows filed for bankruptcy in New York and the British Virgin Islands and promptly ceased shop. Co-founders Davies and Su Zhu went into hiding. About $3 billion is what Three Arrows owes its creditors.
A message to Davies seeking comment on the file went unanswered for some time.
"He is, without question, aware of the Subpoena — having been tagged in 41 responses and 64 retweets — and has, once again, decided to neglect his duty to Three Arrows," the liquidators said, giving proof to the court of Davies' tweets and media pieces mentioning him.
Two counsel for the estate, Russell Crumpler and Christopher Farmer, claimed in the lawsuit that Davies and Zhu's recent attempt to raise tens of millions of dollars for a new crypto exchange was more proof of his evasion of his fiduciary obligations to the company.
They went on to say that "this is not a case of limited compliance, but of no compliance at all."
