A federal bankruptcy judge has approved the issuance of subpoenas to the co-founders of the collapsed hedge fund – Three Arrows Capital (3AC) – Su Zhu and Kyle Davies.

In a document published on Tuesday, United States Bankruptcy Judge Martin Glenn for the Southern District of New York stated,

“The foreign representatives and their agents are authorized to serve subpoenas for the production of documents and testimony upon the founders, the investment managers, and anyone else that might have information about Three Arrows’ affair.”

• With the court order, the liquidators can now request the founders to produce “any recorded information, including books, documents, records, and papers” related to the 3AC’s property or financial affairs since the company was founded.
• The subpoenas will also require the company’s former leadership to turn over seed phrases and private keys within 14 days.
• The document has also named several related individuals and companies, such as Starry Night Capital, the hedge fund’s NFT division, in addition to 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 with the Bankruptcy Court for the Southern District of New York and the British Virgin Islands.
• The two founders were accused of failing to cooperate in the process, following which Zhu hit back at the creditors for allegedly “baiting” their clients.
• Lately, the duo has been active on social media, commenting on developments following the high-profile collapse of Sam Bankman-Fried’s FTX and sister trading firm Alameda Research.