The US judge overseeing the liquidation of Singapore-based Three Arrows Capital has given co-founder Kyle Davies a second order to turn over financial records or be held in contempt. Earlier, liquidators had accused Davies of withholding information, and asking him to turn over documents.

Davies confirmed that 3AC had lost around $200m on its TerraUSD position, which led to creditors margin-calling it, a process where lenders ask the firm to provide collateral to secure a loan. Davies and co-founder Su Zhu are after creating a new company, Open Exchange, which would allow users to trade bankruptcy claims.

The platform's Twitter account says the offering would go beyond the sale of claims to users trading in spot, futures, and claims, among others. Glenn wrote in his opinion that the liquidators had not provided sufficient evidence to establish US jurisdiction for Zhu, and therefore he is not subject to the new judge's order to cooperate.

(By Stacy Elliott)