{"id":23491,"date":"2023-06-16T11:23:21","date_gmt":"2023-06-16T15:23:21","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/three-arrows-capital-liquidators-request-contempt-sanctions-for-co-founder-kyle-davies-whats-going-on\/"},"modified":"2023-06-16T11:23:22","modified_gmt":"2023-06-16T15:23:22","slug":"three-arrows-capital-liquidators-request-contempt-sanctions-for-co-founder-kyle-davies-whats-going-on","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=23491","title":{"rendered":"Three Arrows Capital Liquidators Request Contempt Sanctions for Co-Founder Kyle Davies \u2013 What’s Going On?"},"content":{"rendered":"
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Amid the ongoing legal proceedings surrounding the collapse of Singaporean crypto hedge fund Three Arrows Capital (3AC), the co-founder Kyle Davies is facing potential contempt of court charges.\u00a0<\/p>\n

This is due to his failure to respond to a subpoena requesting information related to the firm’s bankruptcy.\u00a0<\/p>\n

The estate of the collapsed hedge fund has filed a legal document requesting the court to impose a daily fine of $10,000 on Davies, citing his intentional disregard of prior requests.\u00a0<\/p>\n

Additionally, the submitted documents highlight the entrepreneur’s extravagant lifestyle and substantial profits accumulated from managing the bankrupt business.<\/p>\n

The court-appointed Joint Liquidators of 3AC have made numerous documents related to the case available on their Twitter account.\u00a0<\/p>\n

These documents include a subpoena<\/a> dated January 5, 2023, which requests the production of documents, information, or objects and permission to inspect 3AC’s premises in connection with the bankruptcy proceedings.<\/p>\n

Davies accused of dodging court orders<\/h2>\n

Last March, Judge Martin Glenn ordered Davies to comply with a subpoena by April 13, but the liquidators claim 3AC\u2019s co-founder \u201cfailed to comply or respond in any way,\u201d CoinDesk reported.<\/p>\n

\u201cDavies\u2019s failure to respond is not due to an inability to engage with the Court or any credible qualms with its jurisdiction,\u201d according to the filing.\u00a0<\/p>\n

\u201cIt cannot be clearer that the Court can\u2014and should\u2014 exercise personal jurisdiction over Davies, hold him in willful contempt of court, and impose sanctions,\u201d the document said.<\/p>\n

3AC\u00a0filed for bankruptcy in July 2022, declaring the business had \u201ccollapsed in the wake of extreme fluctuations in cryptocurrency markets.\u201d Prior to this, the crypto hedge fund had posted major losses, among others, as a result of the collapse of the TerraUSD stablecoin in May 2022.\u00a0<\/p>\n

3AC founders move on to new venture<\/h2>\n

Meanwhile, last March, Kyle Davies and Su Zhu, who also co-founded 3AC, finalized a funding round for their OPNX exchange, advancing plans to acquire the remaining assets of the troubled exchange CoinFLEX.\u00a0<\/p>\n

At that time, the exchange was said to have raised $25 million, but Kyle Davies declined to disclose who the investors were.\u00a0<\/p>\n

OPNX\u2019s acquisition of CoinFLEX is part of the latter\u2019s restructuring plan, which was approved by a Seychelles court, as indicated by a blog post from CoinFLEX.<\/p>\n<\/p><\/div>\n