The U.S. judge overseeing Three Arrows Capital’s bankruptcy proceedings has again ordered co-founder Kyle Davies to turn over financial documents.
After filing an opinion on the matter last week, U.S. Judge Martin Glenn signed what’s now the second order giving Davies fourteen days to turn over financial records related to his insolvent crypto hedge fund or be held in contempt. That means his new deadline to cooperate with the liquidators is April 13. The last deadline was March 16.
This is not the first time the liquidators have accused Davies of “withholding information.” They filed a similar motion to compel his cooperation in February, saying he had been “shamelessly” raising millions to launch a new company.

3AC Liquidators Ask Judge to Intervene, Say Co-Founder Is 'Withholding Information'
The liquidators overseeing crypto hedge fund Three Arrows Capital’s bankruptcy proceedings have asked the judge to compel co-founder Kyle Davies to cooperate, according to a new court filing. They wrote that Davies “continues to withhold information in his possession that is essential to accessing and controlling certain of the Debtor’s digital assets.” The liquidators allege that Davis and Zhu, “have failed to offer forthright cooperation to the Foreign Representatives, and in doing so have fai...
The Singapore-based firm, which also goes by the name 3AC, was ordered to liquidate in June, following weeks of speculation that the company had endured severe losses following the collapse of the TerraUSD algorithmic stablecoin in May.
In an interview with The Wall Street Journal, Davies confirmed that 3AC had lost approximately $200 million on its TerraUSD position. Pressure mounted as creditors margin called 3AC, meaning they asked the firm to provide more collateral to secure borrowed funds. The final blow came when Voyager Digital (which itself is now undergoing bankruptcy proceedings) issued a default notice for more than $600 million.
Davies and co-founder Su Zhu went quiet on social media for a few months before resurfacing when crypto exchange FTX collapsed and filed for bankruptcy.
The subpoena was served over Twitter on January 5 after the court determined that attempts to serve Davies by more conventional means had been unsuccessful and gave the 3AC liquidators permissions to use social media. That amounted to a tweet that tagged Davies and Zhu and included images of the subpoena.

3AC Founders Kyle Davies and Su Zhu Tagged in Tweet Delivering Court Subpoena
There’s been an interesting contrast between how chatty Three Arrows Capital co-founders Kyle Davies and Su Zhu’s have been on Twitter and how difficult they’ve otherwise been to reach, according to company liquidators. So it was hardly surprising that after getting permission from the judge overseeing the company’s bankruptcy proceedings, Teneo Restructuring tagged @zhusu and @kyleldavies in a tweet with a copy of a subpoena on Twitter. @zhusu and @KyleLDavies jpg copies of orders made by the...
Zhu is not subject to the new judge’s order to cooperate. Glenn wrote in his opinion the liquidators have not provided enough evidence to establish U.S. jurisdiction for Zhu.
“The Foreign Representatives have made a substantial showing regarding Davies’ contacts with the United States,” the judge wrote. “By never appearing, Davies has obviously failed to articulate why these contacts do not render him amenable to discovery orders in the United States.”
The judge again noted that Davies has been posting regularly on social media while refusing to respond or comply with court orders.
“Since January 5, 2023, Mr. Davies has been active on social media, having ‘tweeted’ or ‘retweeted’ dozens of times on Twitter,” he said in a court filing. “The Foreign Representatives claim that Mr. Davis is educated, represented by counsel, and undoubtedly aware of the Subpoena given that there were a large number of replies (41) and retweets (64) regarding the Subpoena following service.”
A week ago, Davies shared a photo on Twitter saying, “There would be peace on Earth if we all spent more time in Bali.”
There would be peace on Earth if we all spent more time in Bali pic.twitter.com/OgA35g81BE
— Kyle Davies (@KyleLDavies) March 23, 2023

Three Arrows Founders Roll Out Bankruptcy Claims Exchange—But US Residents Are Barred
While Su Zhu, a co-founder of bankrupt crypto hedge fund Three Arrows Capital (3AC), announced Thursday that a waitlist is live for Open Exchange (OPNX), the new exchange may not be as open as its name implies. The newly announced venture caters to those who’d like to trade bankruptcy claims—in cases from FTX to Blockfi—but stipulates on its homepage that people in 23 different regions are barred from signing up. Those countries include sanctioned nations such as North Korea, Cuba, and Venezuela...
Last month, Davies and Zhu opened the waitlist for Open Exchange (OPNX), a new company that allows users to trade bankruptcy claims.
The marketing on the company’s website asks users if they have money stuck on a crypto platform and includes the Three Arrows Capital logo with FTX, Genesis, Celsius, BlockFi and Genesis.
But the company’s main Twitter account promises the platform will offer a lot more than the trading of bankruptcy claims.
“OPNX will be more than just a revolutionary claims marketplace,” the company said on Twitter Thursday. “Users will be able to trade spot, futures, claims and much more — all on one platform, with one universal cross margin account.”