Advisory firm Teneo argued that standard methods to contact the Three Arrows Capital founders have failed, and is now looking for other ways to subpoena them.
Liquidators for Three Arrows capital (3AC) have asked a United States court to grant them permission to subpoena the embattled crypto hedge fund’s founders through “alternative means.”
To this date, the whereabouts of Three Arrows Capital founders Su Zhu and Kyle Davies remains unknown, with some accusing the duo of being on the run.
In a court motion filed to the United States Bankruptcy Court Southern District of New York on Oct. 14, advisory firm Teneo claimed that standard methods to contact the duo have failed as the “Founders’ whereabouts remain unknown.”
It also said that the request for Advocatus Law LLP, the “Singapore counsel purporting to represent the Founders,” has declined to accept the subpoenas on behalf of the pair, adding that the founders have also “yet to offer any forthright cooperation” having “only made themselves directly available for two brief discussions” since proceedings began.
As a result, the liquidators had asked the court to use “alternative means” to serve subpoenas, which is understood to include reaching out to the duo on their Twitter accounts and email addresses.
With the filing of this new motion, liquidators say they seek the “authority to serve subpoenas for the production of documents and testimony on the Founders, the Investment Managers, and third parties.”
Meanwhile, an Oct.18 report from Bloomberg claims U.S. regulators are launching a probe into possible legal violations by the Singapore-based hedge fund.
Bloomberg alleges the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) are now investigating whether 3AC misled investors and failed to register with the appropriate agencies.
Both Zhu and Davies have been keeping a low profile in the wake of 3AC’s insolvency in June.
3AC filed for a Chapter 15 bankruptcy on Jul. 1 in a New York court. However, Zhu and Davies’ current location has never been disclosed.
Zhu resurfaced briefly on Twitter in July when he accused liquidators of “baiting“ them for information to use in court, with Davies retweeting the post, but the duo has gone radio silent again since then.
3AC managed billions in assets at one point but became another crypto firm to go bankrupt during the bear market after the broad sell-off in digital assets spurred in part by the collapse of the Terra blockchain and alleged poor management decisions on their part.
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