The Co-Founders of Three Arrows Capital Pledge to Donate Earnings from New Crypto Venture to Creditors
The co-founders of collapsed crypto hedge fund Three Arrows Capital (3AC), Kyle Davies and Su Zhu, have announced plans to donate a portion of their earnings from their newest crypto venture, Open Exchange (OPNX), to the creditors who lost money in the fund’s 2022 collapse. Davies referred to this as a “shadow recovery process” that would be separate from the official liquidation process being handled by Teneo. He stated that the donation would only be made to creditors who were early supporters of OPNX. Davies also mentioned that there are already some creditors who have been fully reimbursed.
Key Points:
– Davies and Su plan to donate a portion of their earnings from OPNX to 3AC creditors.
– The payback scheme is independent of the official liquidation process.
– The donation will only be made to creditors who supported OPNX early on.
– Some creditors have already been fully reimbursed.
– Davies believes in doing good and giving creditors a way to make more money.
The launch of OPNX had faced criticism from the crypto community due to Davies and Su starting a new venture while their hedge fund was in the midst of a liquidation process. The collapsed fund, 3AC, filed for bankruptcy protection in July 2022 and owes $2.8 billion to multiple firms. Davies and Su’s whereabouts have been unconfirmed, with liquidators resorting to serving subpoenas through Twitter. Liquidators are now seeking to recover $1.3 billion from Davies personally.
Hot Take:
Despite facing controversy for starting a new venture during the liquidation process of their collapsed hedge fund, the co-founders of 3AC are now pledging to donate earnings from their new venture, OPNX, to the fund’s creditors. This move aims to provide some compensation to those who lost money and shows a commitment to making amends. However, questions still remain about the responsibility of Davies and Su in the collapse of 3AC and whether this donation is enough to rectify the situation.
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