Three Arrows Capital Liquidators: 'Hedge Fund Founders Ignore Their Commitments'

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Liquidators Three Arrows Capital (TAC) reported that the founders of a bankrupt cryptocurrency hedge fund deliberately do not communicate and hide their location.

Three Arrows Capital bankruptcy is overseencrisis managers of the consulting company Teneo Russell Crumpler and Christopher Farmer. They claim that TAC co-founders Kyle Davies and Su Zhu are obstructing attempts to contact them, knowing about the subpoena.

As stated in documents filed with the court.New York Bankruptcy Court, TAC liquidators summoned the fund's founders to a court hearing on January 5th. Davis and Zhu had until January 26 to respond to the summons, but the deadline passed and the liquidators demanded that the court set a new deadline of March 16.

"Without a doubt, Kyle Davis and Su Zhu know aboutsubpoenas - they were noted in 41 replies and 64 retweets. Once again they have decided to ignore their obligations to Three Arrows Capital,” the liquidators complain.

The founders of TAC have been in hiding sinceLast June, their multibillion-dollar hedge fund collapsed, leading to a protracted bankruptcy procedure. Despite the lawsuits, Davis and Zhu remain active on social media. In January, the creators of TAC made headlines when they announced plans to raise $25 million to launch a new cryptocurrency service.

In October against Three Arrows CapitalAmerican regulators were up in arms: the Commodity Futures Trading Commission (CFTC) and the US Securities Commission (SEC). They suspect the fund of violating securities laws and misleading investors.