Kyle Davies and Su Zhu, co-founders of collapsed hedge fund Three Arrows Capital (3AC), have promised to give back a share of the money made by their newest cryptocurrency venture.
Davies Stated in a Twitter Space That it Would be "Good Karma" to Contribute Any Open Exchange Revenues to 3AC's Creditors
Kyle Davies and Su Zhu, co-founders of collapsed hedge fund Three Arrows Capital (3AC), have promised to give back a share of the money made by their newest cryptocurrency venture, Open Exchange (OX), to investors who lost money when 3AC failed in 2022.
On July 3, Davies stated in a Twitter Space that it would be "good karma" to contribute any Open Exchange revenues to 3AC's creditors. The alleged payback plan is referred to as a "shadow recovery process," apart from the formal liquidation procedure overseen by the consulting firm Teneo.
Davis claimed the process would allow them to donate funds to 3AC creditors but only if they were "early and supporting" of Open Exchange. The pair recently relaunched Three Arrow Ventures.
On July 1, 2022, Three Arrows Capital sought Chapter 15 bankruptcy protection. Subsequent court filings showed that the failed fund owed more than 20 companies almost $2.8 billion. Liquidators are seeking to recoup lost funds totaling $1.3 billion from the co-founders of 3AC.
