- Three Arrows Capital went bankrupt in July 2022, soon after Terra (LUNA) collapsed.
- Liquidators Teneo issued Twitter subpoenas as 3AC co-founders were ‘out of reach.’
- Founders of the now-defunct crypto hedge fund plan to start the new GTX exchange.
The court-appointed liquidators, Crumpler & Farmer, are once again trying to get a hold of Kyle Davies and Su Zhu, the co-founding duo of the insolvent Three Arrows Capital (3AC). In response to Davies’ evasive tactics, the bankruptcy lawyers filed a motion to force the troubled crypto entrepreneur to respond to the internet subpoena.
The motion is publicly available on Twitter, as Three Arrows Capital’s liquidators set up a dedicated account for the saga. Today, the motion was granted by Bankruptcy Judge Martin Glenn, which means that Mr. Davies will have time until 16th March 2023 to respond and provide all the required information.
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— 3ACLiquidation (@3ACLiq) February 8, 2023
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Davies and Zhu ‘Certainly Aware’ of Subpoena
Davies is active on social media, according to the motion filed by Russel Crumpler. The document reads such allegations in the 18th section: “I understand that he has recently been active to raise tens of millions of dollars to fund a new crypto exchange referred to as FTX.”
Indeed, Davies signed the papers as a co-founder of the new GTX crypto exchange, which aims to have a dig at the fallen FTX and even intends to sell tokenized debt tokens, possibly including their bankrupt hedge fund.
On the other hand, Su Zhu isn’t named in the granted motion specifically, but he’s also active on social media, sometimes posting 20-30 times per day. The embattled crypto entrepreneur enthusiastically voices his opinions on arch nemesis Sam Bankman-Fried and fellow fugitive Do Kwon and condemns Alameda Research for putting a ‘moral hazard’ on the crypto industry.
Nope
To have saved FTX would've been the most absurd moral hazard
That an exchange could hunt its own clients, sell their coins, steal their margin, and then at the end of it get a bailout and business as usual — means the industry should burn down https://t.co/KZZ26qCNU3
— Zhu Su
(@zhusu) December 8, 2022
Where Are They Now?
Su ‘Perpetual Optimist’ Zhu is nowhere to be found, even after Teneo requested to confiscate the controversial ‘MuchWOW’ yacht, named in honor of Dogecoin (DOGE).
While the romantic getaway didn’t work out, Zhu claims to live in Dubai, UAE. Meanwhile, Davies was last traced in Indonesia, but his Twitter bio, on the contrary, doesn’t suggest a current location.
The global manhunt for the duo started in the summer of 2022 when Davies and Zhu abandoned their Singapore office one day before the authorities came looking for them, intending to ask some inconvenient questions.
The pair made a run for their money. They even vanished from Twitter for a couple of months, only to re-emerge when the corrupt Sam Bankman-Fried got caught in the act of siphoning funds from FTX and sending it to his drowning sister company Alameda Research.
𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐀𝐥𝐩𝐡𝐚,
Here's my thesis on why I believe that Su Zhu and Kyle's new GTX exchange might 𝐚𝐥𝐫𝐞𝐚𝐝𝐲 be built with a tradable token!,
Introducing '𝑶𝒑𝒆𝒏 𝑬𝒙𝒄𝒉𝒂𝒏𝒈𝒆' (name is subject to potential change,
— Memo (@777pxl) February 4, 2023
On the Flipside
- The new GTX crypto exchange is being built in collaboration with CoinFLEX, another controversial cryptocurrency exchange which had been on a downward spiral in terms of trading activity for years. Some crypto enthusiasts contemplate that the team was chosen deliberately to attract attention, as the CoinFLEX exchange barely generates any social mentions.
Why You Should Care
The fiasco of Terra (LUNA) had a massive domino effect on the crypto industry. Terra’s failed UST stablecoin and the original $LUNA coin are responsible for nearly $2 trillion of digital assets being sent down the drain.
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