Three Arrows founders appeal to have court summons set aside

[SINGAPORE] The founders of Three Arrows Capital (3AC), Zhu Su and Kyle Davies, have appealed for a court summons from the liquidators of their failed cryptocurrency hedge fund to be set aside.

In a court hearing on Thursday (Apr 3), Zhu appealed for a summons to appear for examination before the court to be negated, while Davies appealed to have a contempt of court order and a summons to appear for examination before the court set aside.

The disclosure orders for the summons were for 3AC and not Zhu and Davies, said Eileen Yeo, counsel for the founders and partner at Advocatus Law. She added that Zhu and Davies were also under the impression that they were cooperating with the liquidators’ requests for information.

She also said that the founders were not properly served the orders, but were notified.

The counsel for 3AC’s liquidators, Lionel Leo, who is a partner at WongPartnership, said that there were attempts to serve Zhu notice at his registered address. Meanwhile, Davies was not served notice in Singapore, as the liquidators had learnt he was no longer residing at his registered address.

Leo refuted the founders’ impression of cooperation, citing how the liquidators had to jump through hoops to gain access to Davies’ safety deposit box as an example.

“He only provided the key so we would not have to break the lock,” said Leo.

Chief Justice Sundaresh Menon noted that Zhu and Davies seemed to “want to take multiple bites of the cherry”. Both had ample time to make applications for the orders to be set aside, but did not appeal earlier.

“I think your clients seem happy to fight this from afar as long as the jurisdiction (does) not reach them,” said the Chief Justice.

Judgment for the case has been reserved, and will be delivered at a later date.