In addition to new allegations of collusion between Terra Luna and Three Arrows Capital, the bankruptcy judge has approved subpoenas to be served on the company’s executives.
A federal judge presiding over the bankruptcy proceedings of Three Arrows Capital (3AC) has signed an order authorizing the service of subpoenas on former 3AC executives, including co-founders Su Zhu and Kyle Davies.
The founders are obligated to turn over any “recorded information, including books, documents, records, and papers” that they have in their possession that pertain to the firm’s property or financial affairs.
Too much leverage and the fall of Terra Luna (LUNA), now known as Terra Classic (LUNC), and its algorithmic stablecoin, formerly known as TerraUSD, led to the filing of Chapter 15 bankruptcy by the once $10 billion hedge fund on July 1. (UST).
Ever since, Teneo, the advisory firm hired to liquidate 3AC, has been on the prowl for the company’s assets and the people responsible for its founding.
The most recent order authorizing the subpoenas will require recipients to disclose all of their assets, including digital and fiat currency accounts, seed phrases, private keys, information about securities and unregistered shares, and any accounts held on centralized or decentralized exchanges.
In addition to trading desk company Tai Ping Shan Limited, venture capital firm DeFiance Capital, 3AC-backed NFT fund Starry Night Capital, and all of their associates, the order names hedge fund attorney Hannah Terhune, directors Mark Dubois and Cheuk Yao Pau, and Kelly Chen, wife of co-founder Kyle Davies, as “discovery targets.”
Unless the parties agree otherwise, anyone who is served with the subpoena has 14 days to comply.
As of this writing, neither Zhu nor Davies’ whereabouts have been confirmed; however, it is widely believed that Zhu currently resides in Dubai and that Davies currently resides on the Indonesian island of Bali. They have both been vocal on social media about the collapse of FTX and Alameda research.
