3AC Seeks Contempt of Court Ruling on Founder Kyle Davies For Failing to Respond

Kyle Davies should beryllium recovered successful contempt of tribunal for failing to respond to a subpoena for accusation astir the collapse of Three Arrows Capital (3AC), documents filed by the bankrupt hedge fund’s property Wednesday said.

The filing urges a New York tribunal to enforce a good of $10,000 per time for wilfully ignoring erstwhile requests, citing Davies’ lavish manner and handsome profits from having tally the company, whose bankruptcy successful the mediate of past twelvemonth soon sent shockwaves crossed the crypto sector.

In March, Judge Martin Glenn ordered Davies to comply with a subpoena by April 13, arsenic the tribunal sought accusation connected institution assets, crypto, and records, but 3AC’s liquidators accidental helium “fail[ed] to comply oregon respond successful immoderate way.”

“Davies’s nonaccomplishment to respond is not owed to an inability to prosecute with the Court oregon immoderate credible qualms with its jurisdiction,” the filing said. “It cannot beryllium clearer that the Court can—and should— workout idiosyncratic jurisdiction implicit Davies, clasp him successful willful contempt of court, and enforce sanctions.”

Though contempt is simply a civilian offense, the filing suggests that the important regular good “is just and apt meaningful successful persuading Davies to respond.” It cites a caller interrogation with the New York Times successful which Davies boasts of investing successful a super yacht and perchance buying a backstage island.

Davies’ caller venture, OPNX, for trading claims connected bankrupt companies, was formally reprimanded by Dubai regulators, which said it was an unregistered exchange. A proceeding volition beryllium held connected the U.S. contempt petition connected Aug. 8.

Davies' lawyers did not instantly respond to a petition for comment.