The co-founder of crypto firm 3AC, Kyle Davies, is facing a motion to hold him in contempt as liquidators seek to recover assets of the failed company. According to court documents filed on August 2, the liquidators have accused Davies of failing to comply with a court order to disclose information about the company’s assets.
3AC was a crypto-focused investment firm that was shut down in 2020 after suffering substantial losses. The company’s liquidators, David Ingram and Paul Appleton of David Rubin & Partners, are now seeking to recover assets that they claim were wrongfully transferred out of the company before it was wound up.
Liquidators Seek to Recover Assets
In their motion, the liquidators allege that Davies has failed to provide them with key information about 3AC’s assets, despite a court order requiring him to do so. They claim that Davies has also failed to comply with a request to attend an examination in relation to the company’s affairs.
The liquidators are seeking to recover assets that they allege were transferred out of 3AC without proper authorization or for inadequate consideration. They claim that Davies was involved in these transactions and that he has failed to provide them with information about the assets in question.
Davies Responds to Motion
Davies has responded to the motion by arguing that he has complied with all previous court orders and that the liquidators’ allegations are unfounded. He has also accused the liquidators of pursuing a “vendetta” against him and of attempting to damage his reputation.
In a statement to CoinDesk, Davies said that he “categorically denies any wrongdoing” and that he is “confident that the court will see through the liquidators’ baseless claims.”
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Conclusion
The motion to hold Kyle Davies in contempt is the latest development in the liquidation of 3AC. The case highlights the risks associated with investing in crypto-focused investment firms and the challenges that can arise when companies fail.
As the liquidators seek to recover assets, it remains to be seen how the case will ultimately be resolved and what impact it will have on the wider crypto industry.
