A U.S. bankruptcy judge ordered the founders of Singapore-based Three Arrows Capital Ltd. to turn over records related to the failed cryptocurrency hedge fund’s assets to its liquidators, WSJ Pro Bankruptcy reported. Judge Martin Glenn of the U.S. Bankruptcy Court in New York granted the liquidators’ request to subpoena Three Arrows founders Su Zhu and Kyle Davies as part of an effort to recover the hedge fund’s assets. Messrs. Zhu and Davies have offered only limited cooperation so far and have failed to provide a complete set of books and records, according to the liquidators’ court filings. The subpoenas authorized Friday seek documents related to Three Arrows’ cryptocurrency wallets, accounts and other assets, as well as records of the founders’ communications on email, Twitter, Discord, WhatsApp and Telegram. The liquidators also want to question Messrs. Zhu and Davies under oath, according to court documents. Although Judge Glenn authorized the subpoenas, he said he needed more evidence before deciding whether to grant the liquidators’ request to serve legal notice to Messrs. Zhu and Davies through their Twitter accounts. The liquidators have said they aren’t sure where the founders are currently residing after spending months trying to determine their exact locations. Three Arrows collapsed this summer following a rout in cryptocurrency prices. Its founders applied to have it liquidated in the British Virgin Islands, where Three Arrows is incorporated, after which court-appointed liquidators filed for U.S. bankruptcy protection in New York.
