Kyle Davies calls his intentions to donate OPNX earnings "good karma."
The co-founder of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC) has announced his intention to share a portion of future earnings from his latest crypto venture, Open Exchange (OPNX), with creditors left in the lurch by 3AC's 2022 crash.
One of the 3AC co-founders, Kyle Davies, unveiled the unique payback plan in a July 3rd Twitter Space discussion.
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Davies spoke of creating a "shadow recovery process" separate from the official liquidation procedures. The new scheme, which Davies proudly labels the first of its kind, is his and his partner's way of giving back to 3AC's creditors. However, he specifies this is for those creditors who are "early and supporting" OPNX.
In the conversation, Davies suggested it would be "good karma" to assist creditors in recovering their losses. He stated:
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 bad and they do well, then that's great. And that's good karma, or whatever you want to call it.
According to Davies, several creditors have already regained their investments, and those who prefer not to engage with them are free to abstain.
Davies and his co-founder Su Zhu found themselves in hot water after announcing the launch of OPNX on June 21st, as some in the cryptocurrency community accused them of starting a new venture while ignoring their responsibilities following their hedge fund's collapse.
When questioned about his involvement in a new enterprise while the defunct hedge fund was still liquidating, Davies maintained that the new venture will only be beneficial to creditors.
3AC filed for Chapter 15 bankruptcy protection a year ago. However, the whereabouts of Davies and Su remain unknown, and liquidators had to resort to issuing subpoenas via Twitter on January 5th due to difficulties in locating them.
Amid the tumultuous unfolding of events, the promise of a karmic relief plan represents a glimmer of hope for the affected creditors of 3AC. Whether or not this unusual solution will be beneficial to the fund's creditors remains to be seen as the crypto world keenly watches this unprecedented situation unfold.
