(Kitco News) - Teneo, the foreign advisory firm that has been tasked with liquidating assets belonging to the insolvent crypto hedge fund Three Arrows Capital (3AC), has filed a motion asking a U.S. court to grant it permission to serve subpoenas to the hedge funds founders “via alternative means.”
3AC is one of the most high-profile casualties of the fallout that resulted from the collapse of Terra/Luna, which led to margin calls and notices of default on millions worth of borrowed funds that forced 3AC into bankruptcy.
The motion was filed due to the fact that the whereabouts of Three Arrows Capital founders Su Zhu and Kyle Davies are currently unknown, with some accusing the pair of being on the lamb.
Teneo indicated that the standard contact methods have not had any success as the “Founders’ whereabouts remain unknown.”
When the firm sent a request to Advocatus Law LLP, the “Singapore counsel purporting to represent the Founders,” the law firm declined to accept the subpoenas on behalf of their clients. Teneo noted that the founders have “yet to offer any forthright cooperation,” having “only made themselves directly available for two brief discussions” since proceedings began.
Due to the lack of cooperation and the possibility that “any delay in serving the subpoenas on the Founders may deplete valuable Debtor resources,” Teneo is now asking for the court’s authorization to subpoena the involved parties using “alternative means.”
The alternate means include submitting subpoenas “via (1) email and (2) the Founders’ Twitter page, and (3) the Founders’ Advocatus counsels’ email.”
If granted, the subpoenas would require 3AC’s founders to produce documents to “identify the existence of, location of, and method of accessing and controlling” company assets.
Teneo is also requesting the ability to serve subpoenas to “other third parties via alternative means including mail, email, delivery to the subpoena recipient’s place of business or corporate office, delivery of a copy of the subpoena to the subpoena recipient’s counsel by mail and/or email, provided that the Foreign Representatives attempt no less than two of the aforementioned personal service methods.”
|
| Interpol forms a new division to investigate crypto-related crimes |
On Monday, Bloomberg reported that the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have launched a probe into whether 3AC violated rules by “misleading investors about the strength of its balance sheet and not registering with the agencies.”
If the regulators deem the parties involved to have committed violations, it could potentially lead to monetary fines and other penalties for those found culpable.
The 3AC founders had kept a low profile and remained radio silent since their last correspondence in July when Zhu accused the liquidators of “baiting“ them for information to use in court
