Pledge

Momentum

Davies

Reversal

The co-founders of Three Arrows Capital (3AC), a crypto hedge fund that collapsed in 2022, have pledged to donate a portion of their earnings from their latest crypto venture to the creditors who suffered losses in the fund’s collapse. 
Kyle Davies, one of the co-founders, made this announcement during a Twitter Space session on July 3. 
Davies believes that donating the potential earnings from their new venture, Open Exchange (OPNX), would be a gesture of good karma towards the creditors of 3AC. 
Davies described this proposed payback scheme as a “shadow recovery process” that operates independently of the official liquidation process currently being handled by Teneo, a global consulting firm. 
He claims that this process is the first of its kind and would allow him and his partner to donate funds to 3AC’s creditors, but only if they were early supporters of OPNX. 
Davies stated that there are already several creditors who have been fully compensated and emphasized that those who prefer not to engage with them are free to make that choice. 
Davies further explained that their belief is that by doing good and providing an opportunity for creditors to recover their losses, they are creating positive karma. 
He dismissed concerns about launching a new venture while their hedge fund is still undergoing liquidation, asserting that creditors stand to benefit from the new company. 
However, the launch of OPNX has not been without controversy. 
Davies and his partner have faced criticism from the crypto community for embarking on a new venture while seemingly evading responsibility for the collapse of their hedge fund. 
Three Arrows Capital filed for Chapter 15 bankruptcy protection on July 1, 2022, and court documents revealed that the fund owes over $2.8 billion to more than 20 firms. 
The whereabouts of Davies and his partner remain unknown, and liquidators have resorted to serving them subpoenas through Twitter due to difficulties in locating them. 
A recent report by The New York Times suggests that Davies and his partner have been spending much of their time surfing in Bali. 
Most recently, on June 27, liquidators announced their intent to recover $1.3 billion in lost funds from the co-founders of 3AC. 
The unfolding situation continues to attract attention as stakeholders await further developments in the liquidation process and the outcome of the proposed donation scheme. 
Other Stories: 
<a href="https://www.cryptointelligence.co.uk/binances-reversal-on-delisting-privacy-coins-marks-a-major-win-for-privacy-advocates/">Binance’s Reversal on Delisting Privacy Coins Marks a Major Win for Privacy Advocates</a> 
<a href="https://www.cryptointelligence.co.uk/bank-of-americas-crypto-research-division-publishes-tokenization-report/">Bank of America’s Crypto Research Division Publishes Tokenization Report</a> 
<a href="https://www.cryptointelligence.co.uk/bullish-momentum-builds-for-bitcoin-altcoins/">Bullish Momentum Builds For Bitcoin &amp; Altcoins</a>

Co-Founders of Collapsed Three Arrows Capital Pledge Donation to Creditors

Crypto Intelligence

Other articles published on Jul 5, 2023

Polkadot vs. Solana - Unveiling the Latest Price Trends and Market Sentiments

Bitcoin's Market Cap Indicates Positive Momentum: How Oshi Stands to Benefit

Bitcoin prepares for impending breakout

Taiwanese Government to tackle crypto-powered election bribery

Bankrupt Crypto Lender Celsius Receives Court Approval to Convert Altcoins into Bitcoin and Ethereum

Bitcoin Price Prediction – Tradecurve A Safe Haven As Litecoin (LTC) Launches New Updates

Join our free newsletter for daily crypto updates!