Three Arrows Capital Could Be Served Subpoena, After Court Grants Liquidators Permission

Three Arrows Capital’s (3AC’s) advisory firm Teneo has been granted permission by a Southern District of New York’s bankruptcy court to issue subpoenas as it fights to recoup funds from the embattled hedge fund, according to The Block. 

This announcement comes less than a day after reports claimed the co-founders Zhu Su and Kyle Davies went missing, after liquidators visited the firm’s office in Singapore only to find a locked door and a pile of old mail. 

Liquidators, Russell Crumpler and Christopher Farmer from Teneo, claimed the co-founders’ whereabouts “are currently unknown.” Not only does the subpoenas force the co-founders to talk, but it also gives Teneo the ability to serve subpoenas to other firms with pertinent information. 

This announcement comes several hours after Bitpush reported that Zhu ended his month-long Twitter silence to say that their “good faith to cooperate with liquidators was met with baiting.” In that tweet, Zhu also referenced emails from Advocatus Law LLP to a “Russell” (who is most likely Russell Crumpler from Teneo), where he explained how they believed Teneo baited 3AC. 

3AC was ordered to liquidate on June 27 from a court in the British Virgin Islands, with the court also appointing Teneo to oversee the liquidations. Several days after that, 3AC filed for Chapter 15 bankruptcy in New York. 

3AC’s troubles started as a result of the Terra ecosystem collapsing, which saw its two cryptocurrencies, UST and LUNA, decrease in value by 99% in the course of a week. While Davies noted that 3AC was able to recover from the collapse, the ensuing overall market crash and selloff was insurmountable for the hedge fund. 

Author: Tyler Irvin

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