Bankruptcy Court Authorizes Service of Subpoena on U.S. Nationals Through Social Media While Prohibiting the Issuance of Subpoena on Foreign Nationals Abroad
In this article, the authors explore a decision by a New York bankruptcy court that allowed the liquidators in a Chapter 15 bankruptcy case to serve a subpoena on a U.S. citizen overseas via social media.
Corrupt managerial behavior has been a driver in the collapse of the cryptocurrency market. Enforcing and defending claims against directors and officers, where the directors and officers are not living in the United States and may not be U.S. citizens, is a current judicial focus in the U.S. litigation system.
In the Three Arrows Capital (Three Arrows) Chapter 15 case, the U.S. Bankruptcy Court for the Southern District of New York (the U.S. Bankruptcy Court) addresses founder misconduct and defines the limits of the United States’ broad discovery tools to aide a letterbox jurisdiction, like the British Virgin Islands (BVI), in corralling bad actors and subjecting them to forensic examination.
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“Bankruptcy Court Authorizes Service of Subpoena on U.S. Nationals Through Social Media While Prohibiting the Issuance of Subpoena on Foreign Nationals Abroad,” by Michael B. Schaedle and Evan Jason Zucker was published in the June 2023 edition of Pratt’s Journal of Bankruptcy Law (Vol. 19, No. 4), an A.S. Pratt Publication, LexisNexis. Reprinted with permission.
This article was first published in MAINBRACE: March 2023, Blank Rome's maritime newsletter.