Two founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC), Kyle Davies and Su Zhu, will donate future earnings to creditors who lost money after its implosion last year. Davies described the plan as a shadow recovery process, outside the ongoing liquidation proceedings. He said that the founders believed in karma and that any of these extra donations would supplement any recoveries through the formal process.
We have this process by which we will donate over time, Davies said. We very much believe in the idea that if we do good and we say, you know, creditors who lost money, they have a way to make more back.
The two have launched a trading platform called Open Exchange (OPNX) to trade bankruptcy claims. Davies said that there is a connection between their new venture and creditors, who will in fact benefit from their new entrepreneurial journey.
One of the things we really believe in is karma, and that there is something greater than all of us, Davies said.
The shadow recovery process described by Davies doesn’t involve a tokenized asset. Currently, only claims from lender Celsius are tradeable on the platform, but claims in the bankruptcies of FTX, Genesis, BlockFi, Voyager, Hodlnaut, Mt. Gox, Vauld, Zipmex and even Three Arrows Capital are coming soon, according to its website.