The 3AC founders will be found in contempt of court if they fail to reply to the order.

Three Arrows Capital (3AC) founders Kyle Davies and Su Zhu have been ordered to attend court in the British Virgin Islands on Dec. 19 as part of the liquidation proceedings for the crypto hedge fund, which collapsed last year.

The 3AC founders will be found in contempt of court if they fail to reply to the order.

Kyle Davies and Su Zhu are required to provide liquidators with all documents relevant to the firms’ bankruptcy by April 14.

3AC imploded last June as a depressed crypto market exposed the firm’s long-only trading strategy. The 3AC estimated its assets to stand at around $1 billion compared to liabilities of $3 billion.

The collapse was one of the flashpoints in the onset of a crypto winter, bringing about similar collapses from multiple other crypto firms. Companies with 3AC exposure such as Voyager Digital, Celsius and Genesis Asia Pacific (which, like CoinDesk, is part of the Digital Currency Group) subsequently filed for bankruptcy.

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Blockchain.com has also said it is cooperating with ongoing investigations into the hedge fund, which “defrauded the crypto industry.”

Crypto exchanges Blockchain.com and Deribit were among the creditors to have pushed for the liquidation of troubled hedge fund Three Arrows Capital (3AC), Bloomberg reported on Friday.

Blockchain.com has also said it is cooperating with ongoing investigations into the hedge fund, which “defrauded the crypto industry,” the report said, citing a spokesperson.

The liquidation of 3AC was ordered in a British Virgin Islands court earlier this week. New York-based Teneo Restructuring was called in to work with creditors and handle the insolvency.

3AC suffered heavy losses in the recent crash in the crypto markets, with the possibility of insolvency reported in mid-June after the firm incurred at least $400 million in liquidations.

Crypto derivatives exchange Deribit was among those to liquidate 3AC’s capital positions after the hedge fund failed to meet margin calls.

“We believe Three Arrows Capital defrauded the crypto industry and intend to hold them accountable to the fullest extent of the law,” a Blockchain.com spokesperson said in a statement, according to Bloomberg’s report. “We have filed for the immediate liquidation of all global assets of Three Arrows.”

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