Kyle Davies, the co-founder of bankrupt hedge fund Three Arrows Capital (3AC), disclosed via a Twitter thread on Jan. 11 the creation of a 3AC creditors group amid complaints from creditors over bankruptcy costs.

According to Davies, creditors continue to express frustration with the ongoing costs and handling of assets during the bankruptcy process, suggesting that “intercreditor disputes are delaying the process, and the estate value is not being maximized.”

The group’s first meeting discussed several topics, including ways to reduce “ongoing legal costs, pursue claims on a contingency basis against Luna consortium/FTX/Genesis, and organize better ways to deal with asset sales/distributions.” Davies invited all creditors to join the group and announced regular meetings, without disclosing any further details.

The company filed for a Chapter 15 bankruptcy on July 1 in a New York court, with no known whereabouts of founders Davies and Zhu Su. Lawyers representing the liquidators in the case have been trying to trace and recover assets since then, but the founders haven’t cooperated. “The liquidators are trying to put things together without any help from them. They should cooperate if they want to help investors,” a source familiar with the matter told Cointelegraph. 

The last attempt by the liquidators to reach Davies and Su was through a subpoena on Twitter on Jan. 5, after permission was granted by Singaporean authorities following an order from a U.S. bankruptcy court. 

The subpoena aims to give liquidators access to account information, seed phrases and private keys for 3AC’s digital and fiat assets; details about the securities and unregistered shares; and any accounts held on centralized or decentralized exchanges, along with any other tangible or intangible assets. 

Liquidators claim that the co-founders are located in Indonesia and the United Arab Emirates, where it is difficult to enforce foreign court orders. On the creditor’s behalf, they have seized $35.6 million in fiat currencies held by Singaporean banks or by the company’s pre-appointment lawyers. Additionally, over 60 types of cryptocurrencies have been identified and are being held in a digital currency custody account.