Federal Judge Issues Subpoenas To 3AC Leadership As Controversy Over Terraform Dump Intensifies

Zinger Key Points
  • Subpoenas issued to 3AC leadership seeking all documents pertaining to the crypto hedge fund.
  • 3AC had filed for Chapter 15 bankruptcy on July 1.

An order for the delivery of subpoenas to Three Arrows Capital's former leadership, including co-founders Su Zhu and Kyle Davies, has been signed by a federal judge handling the bankruptcy proceedings for the defunct cryptocurrency hedge fund.

The subpoenas demand that the founders turn over "recorded information, including books, documents, records, and papers" that pertain to the firm's assets or financial affairs.

When Terra Luna LUNA/USD, now known as Terra Classic LUNC/USD, and its algorithmic stablecoin formerly known as TerraUSD collapsed, the hedge fund—worth $10 billion at its peak—filed for Chapter 15 bankruptcy on July 1.

Since then, the firm's liquidator, consultancy firm Teneo, has been looking for the company's assets and seeking to identify the co-founders of 3AC.

According to the most recent order authorizing the subpoenas, the recipients will be required to turn over all account information, seed phrases, and private keys for their digital and fiat assets, information regarding their securities and unregistered shares, any accounts held on centralized or decentralized exchanges, along with any other tangible or intangible assets.

Also read: Wire Network Launches Crypto Wallet Megamask, Seeking To Redefine Standards For Cross-Chain Interoperability And Asset Transfers

The order also names trading desk company Tai Ping Shan Limited, venture capital firm DeFiance Capital, NFT fund Starry Night Capital, 3AC-backed NFT fund Starry Night Capital, directors Mark Dubois and Cheuk Yao Pau, along with Kelly Chen, the wife of co-founder Kyle Davies, as "discovery targets," including all of their associates.

3AC Founders Missing

At the time of writing, neither Zhu nor Davies' whereabouts have not been confirmed.

However, it is believed that Zhu is residing in Dubai and Davies is residing on the Indonesian island of Bali.

They both frequently post updates on social media on the developments surrounding the demise of FTX and Alameda research.

Next: NY Hedge Fund Fir Tree Sues Cypto Asset Manager Grayscale As GBTC Drops To A Record-Low Discount Of 43% Vs Bitcoin

Photo: Courtesy of Shutterstock.

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsMarketsKyle DaviesSu ZhuThree Arrows Capital
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!