The Founders of Bankrupt Crypto Hedge Fund Pledge to Donate “Future Earnings” to Creditors
The founders of Three Arrows Capital (3AC), a bankrupt crypto hedge fund, have announced that they will donate “future earnings” to creditors who lost money in the fund’s collapse. This pledge was made by one of the partners, Kyle Davies, during a Twitter Spaces discussion hosted by Mario Nafwal. Davies referred to this donation as a “shadow recovery process” that would supplement the ongoing liquidation proceedings. He emphasized his belief in “karma” and the idea that doing good will provide a way for creditors to recoup their losses.
Key Points:
– The founders of 3AC plan to donate “future earnings” to creditors outside of the formal liquidation process.
– Some early creditors have already been made whole, according to Davies.
– The founders have been criticized for hindering creditor recoveries and ignoring requests for assistance.
– Davies and his co-founder, Su Zhu, are working on a new crypto exchange called Open Exchange (OPNX), which will allow trading of bankruptcy claims.
– Currently, only claims from lender Celsius are tradeable on OPNX, but claims from other bankruptcies are expected to be available soon.
Hot Take:
While the founders’ pledge to donate “future earnings” may be seen as a positive gesture, it is important to consider the criticisms they have faced for hindering creditor recoveries. Only time will tell if their new venture, Open Exchange, will truly benefit creditors and provide a means for them to recoup their losses.
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