Three Arrows Capital Founders to Donate Profits to Creditors
The co-founders of Three Arrows Capital (3AC), Kyle Davies and Su Zhu, have announced that they will donate a portion of the profits from their latest venture, Open Exchange (OPNX), to the creditors who experienced financial losses when 3AC collapsed in 2022. This gesture is seen as a way to repay the early and supportive creditors of OPNX and to generate good karma. Davies clarified that those who choose not to engage with them are not obligated to receive compensation.
Concerns Surrounding the Launch of OPNX
The launch of OPNX has raised concerns, especially since 3AC filed for bankruptcy protection and revealed a significant liability of $3.5 billion owed to various crypto firms. The largest creditor is Genesis Asia Pacific, which loaned $2.3 billion to the hedge fund. Davies and Su’s whereabouts were initially unknown, and they were eventually served with subpoenas through Twitter. Liquidators are actively working to recover $1.3 billion in lost funds from the co-founders.
Hot Take: A Questionable Move
While the decision to donate profits to creditors may be seen as a positive step, it raises questions about the launch of OPNX so soon after 3AC’s collapse. The substantial liabilities and the founders’ whereabouts further cast doubt on the legitimacy of their new venture. It remains to be seen how this situation will unfold and whether the creditors will be fully compensated.
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