In an announcement made during a Twitter Spaces session hosted by Mario Nafwal, Kyle Davies, one of the founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC), stated that he and his co-founders would be donating “future earnings” to creditors who suffered losses due to the fund’s collapse last year, media report said.
This move is seen as a gesture of goodwill and an attempt to embrace the concept of “karma.” Davies referred to this plan as a “shadow recovery process” that would operate separately from the ongoing liquidation proceedings aimed at recovering value for creditors.
While some early creditors have already been compensated, the cryptocurrency community and other creditors, who are still dealing with significant losses, may approach these promises with skepticism. Teneo, the liquidator for 3AC, responded to Davies’ comments by accusing the founders of hindering the creditor recovery process and suggesting that they focus on fulfilling court-ordered activities instead of making future promises.
Davies addressed concerns about his involvement in a new crypto exchange called Open Exchange (OPNX) while the liquidation process of Three Arrows Capital is ongoing. He stated that there is a connection between their new venture and the creditors, implying that the creditors will benefit from their entrepreneurial journey.
Open Exchange (OPNX) aims to facilitate the trading of bankruptcy claims and claims in various bankruptcies, including those of Celsius Network, FTX, Genesis, BlockFi, Voyager, Hodlnaut, Mt. Gox, Vauld, Zipmex, and Three Arrows Capital. Although the exact mechanism of the “shadow recovery process” was not clarified by Davies, he mentioned that it does not involve a tokenized asset.
Davies shared that Open Exchange is currently seeing a daily trading volume of approximately $50 million and acknowledged that their journey is ongoing. However, CoinDesk’s request for clarification on the process was not addressed by Davies at the time of publication.
