Judge approves subpoenas for 3AC cofounders 

Please fol­low and like us:
Pin Share

A fed­er­al judge in the South­ern dis­trict of New York over­see­ing the bank­rupt­cy pro­ceed­ings of Sin­ga­pore-based cryp­to hedge fund Three Arrows Cap­i­tal (3AC) has approved the deliv­ery of sub­poe­nas to 3AC’s cofounders, Su Zhu and Kyle Davies.

See relat­ed arti­cle: Can cryp­to return?

Fast facts

  • The sub­poe­nas will require Zhu and Davies to reveal account infor­ma­tion, seed phras­es, pri­vate keys to accounts on both cen­tral­ized and decen­tral­ized exchanges, and any oth­er infor­ma­tion relat­ed to 3AC’s finan­cial infor­ma­tion, with­in 14 days.
  • The judge’s order includ­ed addi­tion­al “dis­cov­ery tar­gets,” name­ly hedge fund attor­ney Han­nah Ter­hune, direc­tors Mark Dubois and Cheuk Yao Pau, and Kel­ly Chen, the wife of Kyle Davies.
  • 3AC filed for Chap­ter 15 bank­rupt­cy on July 1, hop­ing to shield its U.S. assets after a court in the British Vir­gin Islands report­ed­ly ordered the firm into liq­ui­da­tion a week ear­li­er. Chap­ter 15 legal­ly pro­tects U.S. assets of insol­vent for­eign debtors from cred­i­tors in the U.S.
  • The U.S. Com­mod­i­ty Futures Trad­ing Com­mis­sion (CFC) and the Secu­ri­ties and Exchange Com­mis­sion (SEC) have also launched inves­ti­ga­tions to deter­mine whether the bank­rupt hedge fund mis­led investors about its bal­ance sheet.
  • The sub­poe­nas come short­ly after pseu­do­ny­mous Ter­ra whistle­blow­er, Fat­Man, claimed to have found on-chain evi­dence that Ter­raform Labs sold US$450 mil­lion worth of UST on the open mar­ket, in the three weeks before UST lost its dol­lar peg.
  • While the two wal­lets sell­ing the UST have been con­firmed to belong to Ter­raform Labs, a Chainal­y­sis report from June pin­points Terra’s crash to the actions of two oth­er traders, who swapped 185 mil­lion UST for USDC in the hours lead­ing up to the crash.

See relat­ed arti­cle: Recov­er­ing cryp­to from insol­vent com­pa­nies may be eas­i­er than you think



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *