3AC Creditors to Receive Future OPNX Profits as Donations: Kyle Davies
- 3AC co-founder Kyle Davies said that OPNX will donate earnings to the creditors of the hedge fund.
- He said that it would be good “karma” to donate the earnings to the creditors of Three Arrows Capital.
- Davies said that there are already a “number of creditors” that have been made whole.
- “If we do bad and they do well, then that’s great. And that’s good karma, or whatever you want to call it,” he said.
The co-founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC) aim to repay the creditors by donating them all the earnings from their new business called the Open Exchange, or “OPNX,” a crypto exchange created by Su Zhu and Kyle Davies. The new exchange went live on April 4 but has yet to receive appreciation from the crypto space, while many call it just another scam attempt.
As per the statements from Davies in a July 3 Twitter Spaces, the 3AC co-founder believes that it would be good “karma” to donate the earnings from the operations of the OPNX exchange to the creditors of the bankrupt crypto hedge fund, which collapsed in early 2022, leading to the onset of the crypto bear market.
Davies also added that the donation can be considered a “shadow recovery process,” which will run independently from the official liquidation process of the bankrupt hedge fund. The bankruptcy process of 3AC is currently being managed by the global consulting firm Teneo. Moreover, the co-founder stated that this is a “first” of its kind of methodology being followed in a bankruptcy process.
Davies said that he and Su will make the donations to 3AC creditors, but only if they are “early and supporting” of OPNX. He said that there are already a “number of creditors” that have been made whole. “If there are some that don’t want to deal with us, then they don’t have to,” Davies 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 badly and they do well, then that’s great. And that’s good karma, or whatever you want to call it,” said Davies.
Furthermore, when asked how he could work on a new venture when his previous firm is amidst a liquidation process, Davies stated that the creditors of 3AC stand to “benefit” from the new company, the OPNX crypto exchange.
As reported by BitcoinWisdom in May 2023, the NFT collection owed by the bankrupt crypto hedge fund fetched $2.5 million in auction as creditors tried to reclaim their investments. The NFTs included Tyler Hobbs Fidenza #725 which fetched around $1 million.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
