During a recent Twitter Space session on July 3rd, Kyle Davies, one of the co-founders of Three Arrows Capital (3AC), expressed a heartfelt commitment to providing assistance to creditors who suffered losses during the unfortunate collapse of their crypto hedge fund in 2022.
Davies revealed that, in an act of goodwill and to promote good karma, they intend to donate a portion of the earnings generated by their latest crypto venture, Open Exchange (OPNX) towards aiding these creditors.
Davies referred to the proposed reimbursement plan as a distinctive “shadow recovery process,” separate from the ongoing official liquidation proceedings overseen by the global consulting firm Teneo.
Emphasizing its uniqueness, Davies arrested that this process would enable him and his associate to contribute funds to the creditor of 3AC, but with a condition: these creditors must have shown early support for OPNX.
Davies further stated that a considerable number of creditors have already been fully compensated through this process. He added that those who choose not to engage with them are under no obligation to do so.
Also, he added, “We very much believe that if we do good and we say to creditors who lost money, they have a way to make more back. If we do bad and they do well, then that’s great. And that’s good karma, or whatever you want to call it.”
When questioned about his involvement in a new venture despite the ongoing liquidation process of his bankrupt hedge fund, Davies maintained that the creditors would actually stand to gain significant advantages from the new company.
Zhu Su and Kyle Davies have recently introduced Open Exchange (OPNX), a trading platform specifically designed for the purpose of trading bankruptcy claims. The exchange has reported an impressive number of 20 million users who collectively hold $20 billion worth of claims.