Kyle Davies, co-founder of bankrupt cryptocurrency hedge fund Three Arrows Capital, has been ordered to respond to the court summons issued to him in January or risk being held in contempt of court.
The January 5 summons was issued to Davies via Twitter after approval by a New York bankruptcy court., ordering him to provide 3AC liquidators with documents such as seed phrases and private keys, as well as company communications and other related documents within 14 days.
After hearing nothing from Davies, US bankruptcy judge Martin Glenn on March 22 granted a petition to appear, noting that Davies can appear and rebut the arguments put forward by the 3AC liquidators, “or he can not appear, as he has done up to now, and, frankly, take the risk.”
There would be peace on Earth if we all spent more time in Bali pic.twitter.com/OgA35g81BE
—Kyle Davies (@KyleLDavies) March 23, 2023
There would be peace on earth if we all spent more time in Bali
A motion to compel is a legal request for the court to compel one of the parties to provide evidence to the party who filed the motion.
People held in contempt during a civil proceeding are usually fined, but can also be jailed. The purpose of civil contempt is to coerce compliance, so the severity of the punishments may increase until the order is complied with.
The current whereabouts of Kyle Davies and Su Zhu, co-founder of 3AC, are unknown.
Davies’ most recent tweet, from March 23, appears to show a photograph of him in Bali. However, an earlier tweet from the same day shows him with Su Zhu and another person in Bahrain.
This is not Dubai. This is near World Trade Center in Bahrain pic.twitter.com/owVPctfINA
— Silv (@SilvXBT) March 22, 2023
This is not Dubai. This is near the World Trade Center in Bahrain
However, on the same day Su Zhu also shared a tweet with a recognizable landmark in the background, suggesting that he may be or may have recently been in Dubai.
— Zhu Su 朱溯 (@zhusu) March 22, 2023
According to the lawyers for the liquidators of 3AC, Davies “has chosen to ignore his duties with Three Arrows”.
For his part, The 3AC couple has teamed up with CoinFLEX to launch OPNX, a marketplace intended to enable the trading of credits in crypto firm bankruptcy proceedings.
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