- Kyle Davies, the co-founder of 3AC, is facing contempt of court charges for failing to comply with a subpoena regarding the hedge fund’s collapse.
- A recent filing requests a New York court to impose a daily fine of $10,000 on Davies, citing his luxurious lifestyle and company profits.
- Despite a court order, Davies did not respond or comply with the subpoena, according to 3AC’s liquidators.
According to recent documents filed by the bankrupt crypto hedge fund Three Arrows Capital’s (3AC) estate, 3AC co-founder Kyle Davies is asked to be held in contempt of court for his failure to comply with a subpoena regarding the collapse of 3AC.
As per reports, the filing requests the New York court to impose a daily fine of $10,000 on Davies for deliberately disregarding prior requests. The filing highlights Davies’ extravagant lifestyle and profits derived from his management of the company.
In a recent New York Times interview, Kyle Davies did speak about how he and 3AC co-founder Su Zhu planned to buy a yacht and were also browsing islands while their business was thriving. Davies stated that:
I just told Su: ‘I’m going to get a boat. I need it,’” he recalled. “Su was like, ‘Well, I need it, too.’ And I was like, ‘Well, we need it together then.
During the interview, Davies mentioned that the shipbuilder terminated their contract after he and Zhu failed to make a final payment, as stated in court records. Subsequently, the yacht was sold to a different buyer, and now Three Arrows’ liquidators are pursuing a claim of $30 million from that transaction.
This January, the liquidators of 3AC delivered subpoenas to the fund’s founders Su Zhu and Kyle Davies via Twitter. While Davies, being a U.S. citizen, received the subpoena from the Southern District of New York Bankruptcy Court, both co-founders also were served with the order by the Singaporean courts.
The subpoena specifically requested information about investor accounts, Three Arrows’ crypto derivatives trading activities, and technical details related to the firm’s crypto wallets used for trading.
Additionally, the liquidators of 3AC sought documents that provide insight into the firm’s various transactions, investments, partnerships, and engagements with service providers and counterparties. In February, 3AC liquidators decided to sell some of the company’s NFTs.
Despite a court order by Judge Martin Glenn in March, directing Davies to comply with a subpoena by April 13 and provide information on company assets, crypto holdings, and records, 3AC’s liquidators assert that he did not adhere to the order or respond in any manner.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
