Founders of 3AC to Donate OPNX Future Earnings to Creditors
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- What 3AC founders are to donate some of the profits of their latest venture
- Why Many were left out of pocket when 3AC collpased in 2022
- What next Their newest venture, Open Exchange, was announced yesterday
The co-founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC) have committed to donating a portion of the profits generated by their latest crypto venture to the creditors who suffered financial losses due to the fund’s collapse in 2022.
During a Twitter Space event on July 3, Kyle Davies, co-founder of Three Arrows Capital (3AC), announced that he and his co-founder would donate some of their earnings from their latest crypto venture, Open Exchange (OPNX).
Davies said that it would be a positive gesture of “good karma” to contribute the potential earnings to 3AC’s creditors.
He promoted the process as the most pioneering initiative of its kind, saying it would enable himself and Su to contribute funds to 3AC creditors who were “early and supportive” of OPNX.
According to Davies, several creditors had already received total compensation.
He added, “Those who choose not to engage with us are not obligated to do so.”
However, when questioned about his involvement in a new venture while his recently bankrupt hedge fund was liquidated, Davies said that creditors would only gain from the new company.
Controversial Launch of OPNX
The launch of OPNX a few months after 3AC filed for bankruptcy protection has raised concerns, particularly given court filings indicating a substantial $3.5 billion liability owed to 27 crypto firms. The largest creditor listed is Genesis Asia Pacific Pte Ltd., a subsidiary of Digital Currency Group, which extended a loan of $2.3 billion to the hedge fund.
On July 1, 2022, Three Arrows Capital filed for Chapter 15 bankruptcy protection, revealing through subsequent court documents that the collapsed fund owes over $2.8 billion to more than 20 firms.
The pair’s whereabouts remained unconfirmed, and liquidators resorted to serving them with subpoenas through Twitter on Jan. 5 due to difficulties tracking them down.
A recent report by The New York Times stated that Davies and Su had spent most of their time surfing in Bali.
On June 27, liquidators announced their active pursuit to recover $1.3 billion in lost funds from the co-founders of 3AC.
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