3AC Su Zhu co-founders Kyle Davis has filed for bankruptcy

A federal bankruptcy judge has agreed to issue subpoenas for the co-founders of the collapsed hedge fund Three Arrows Capital (3AC) Sue Chu and Kyle Davis.

In a document released Tuesday, United States Bankruptcy Judge Martin Glenn said of the Southern District of New York:

“Foreign representatives and their agents may file subpoenas to provide documents and affidavits to founders, investment managers, and anyone else who may have information about Three Arrows’ business.”

  • By court order, liquidators can now require founders to provide “all information on file, including books, documents, records, and papers” relating to 3AC’s property or finances since the company’s incorporation.
  • The subpoenas will also require the company’s previous management to turn over the initial statements and private keys within 14 days.
  • The document also identified several related individuals and companies, such as Starry Night Capital, the hedge fund’s NFT division, as well as Mark Dubois, Cheuk Yao Pau, and Kelly Chen (Davies’ wife) as “discovery targets.”
  • Three Arrows filed for bankruptcy in July and is in Chapter 15 bankruptcy proceedings in the Bankruptcy Court for the Southern District of New York and the British Virgin Islands.
  • The two founders were accused of not cooperating in the process, after which Zhou hit back at the creditors for allegedly “soliciting” their clients.
  • Recently, the duo has been active on social media, commenting on developments following the high-profile collapse of Sam Bankman-Fried’s FTX subsidiary and sister trading company Alameda Research.

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