Bankruptcy Court Approves Service of Subpoenas Via Email and Twitter
In the Chapter 15 case of Three Arrows Capital, Ltd., the Bankruptcy Court for the Southern District of New York recently held that Rule 45 of the Federal Rule of Civil Procedure (“Rule 45”) authorizes service of subpoenas to U.S. nationals or residents who are in a foreign country through alternative means to personal service, including via email and Twitter. In reaching this conclusion, the Bankruptcy Court noted the “curious” lack of case law on alternative service in the context of Rule 45 but was “convinced” that service via email and social media can be used to establish actual notice so as to satisfy the requirement of due process.
Three Arrows Capital, Ltd. (“3AC”) is a Singapore-based cryptocurrency investment firm incorporated under the laws of the British Virgin Islands (“BVI”), co-founded by Kyle Livingstone Davies and Su Zhu (the “Founders”). The once-prominent firm collapsed in the wake of what became widely known as the “crypto winter” and commenced a liquidation proceeding in BVI (the “BVI Proceeding”). The joint liquidators appointed in the BVI Proceeding, acting as foreign representatives (the “Foreign Representatives”), commenced a Chapter 15 case in the Bankruptcy Court and were granted certain provisional relief to preserve 3AC’s assets located in the United States, including the authority to conduct discovery through subpoenas.
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Dechert LLP by Shmuel Vasser and Donghao (Helen) Yan. Published March 15, 2023.