Story of three arrows capital (3ac) involves co-founders kyle davies and su zhu, who have been difficult to reach. in june, 3ac was ordered to liquidate and lost approximately $200 million on its terrausd position. pressure mounted as 3ac’s creditors margin called 3ac and voyager digital issued a default notice for more than $600 million. teneo restructuring served a subpoena on twitter to @zhusu and @kyleldavies, tagging them in a tweet.
Drama began in july when davies and zhu went quiet on social media and reports surfaced that the company’s singapore office had been abandoned and the founders were missing. in november, davies and zhu resurfaced and alleged that ftx founder sam bankman-fried’s firm had been actively hunting 3ac’s positions. the high court of the republic of singapore ordered 3ac and its co-founders to submit affidavits and financial documents in december.
Liquidators seized $35 million worth of funds tied to the firm and were seeking permission to sell the company’s “much wow” superyacht. it’s not unprecedented for a subpoena to be served over twitter, though twitter did not immediately respond to a request for comment from decrypt. the events seem to have been sparked by 3ac’s losses on its terrausd position and the pressure from creditors to margin call the company.