Three Arrows’ Founder Refused to Comply With Subpoena, Stonewalling Probe, Court Told

Kyle Davies refused to comply with a court subpoena for the books and records of his former crypto hedge fund Three Arrows Capital (3AC), a New York court was told in a Tuesday night filing.

Davies was accused of stonewalling a probe into the company, which managed as much as $3 billion in assets before collapsing last year, while “shamelessly” promoting new crypto ventures.

Davies and co-founder Su Zhu “have refused to meaningfully engage,” said a filing on behalf of Russell Crumpler and Christopher Farmer, who now represent the bankrupt company. Davies and Zhu “have made only selective and piecemeal disclosures” and “refusal to cooperate violates their duties owed to Three Arrows,” it added.

Farmer and Crumpler attempted to serve a court-approved subpoena to Davies via Twitter on Jan. 5, but were ignored despite Davies’ active social media presence, the document said.

Farmer and Crumpler are seeking to compel Davies to comply with the subpoena, a request due to be considered at a March 2 hearing.

(By Jack Schickler)

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