June 16 (Cointime) - Kyle Davies, co-founder of Three Arrows Capital (3AC), is facing civil sanctions for ignoring a subpoena related to bankruptcy proceedings, according to court filings from 3AC's creditor council.

The motion seeks to hold Davies in contempt of court and includes a daily fine of $10,000 until compliance. The motion does not apply to fellow co-founder Su Zhu, who is not subject to the jurisdiction of US courts due to his Singaporean citizenship.

Creditors have accused the founders of being "on the run" from the bankruptcy court, and their whereabouts and legal jurisdictions are posing challenges for asset recovery.