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Court Summons 3AC’s Leadership Over Emerging Claims on Terraform Collapse



Court Summons 3AC's Leadership Over Emerging Claims on Terraform Collapse

Following ongoing investigation into Terraform labs, a federal judge handling the Three Arrows Capital’s (3AC’s) bankruptcy proceedings has issued a subpoena demanding the presence of 3AC’s leadership – Su Zhu and Kyle Davies.

The motion was filed in light of the emerging claims that they were involved in the Terraform dump that led to the eventual collapse of the project. The subpoenas will require the duo to provide valuable information including books, documents or records in their custody.

It would be recalled the famous Hedge fund, 3AC, worth approximately $10 billion filed for Chapter 15 bankruptcy on Jul. 1 following the collapse of Terra Luna (LUNA), which he has a very close ties with. 

Meanwhile, 3AC’s liquidators – advisory firm Teneo – has been trying to get hold of the hedge fund firm’s assets since it filed for bankruptcy in order to recover its investment and pin down the two co-founders.

According to a Report, the Big Investors Left Terra While the Rest Bought

However, the latest subpoena order will mandate the recipients to voluntarily release all account information, seed phrases, as well as private keys for its digital and fiat assets. Similarly, they are now mandated to provide information on securities and unregistered shares. 

It should be noted that the order also indicted hedge fund attorney Hannah Terhune, directors Mark Dubois and Cheuk Yao Pau, and Kelly Chen – wife of co-founder Kyle Davies respectively. They were tagged as “discovery targets.”

Claim that Terraform dumped $450M UST Emerges

Amidst investigation into the obscure events that led to the collapse of Terraform Lab, a claim has emerged that Terraform dumped $450M UST before the crash. 

A couple of tweets released by a self-acclaimed whistle blower on Dec. 6 revealed that it was the actions of Terraform Labs that instigated depegging of TerraUSD (UST), now TerraClassicUSD (USTC). The info was reportedly verified by on-chain data.

Recall that the renowned Dark knight of Terra, FatManTerra filed a class action lawsuit in July against Terraform Labs including Do Kwon and Jump Capital through U.S. Solicitors, Scott+Scott in a bid to recoup his UST investments.