3AC founders to donate future earnings to creditors citing ‘good karma’
The co-founders of the collapsed crypto hedge fund, Three Arrows Capital (3AC), are committed to donating funds citing “good karma.” Some of their future earnings from their latest crypto venture will go to creditors who suffered losses during the fund’s collapse in 2022.
During a recent Twitter Spaces session hosted by IBC Group CEO Mario Nafwal, Kyle Davies, one of the co-founders, revealed their plan to allocate a portion of the future earnings from OPNX to assist the affected creditors. This philanthropic initiative stands apart from the ongoing liquidation proceedings and aims to provide additional support to those who lost funds.
Davies reiterated the co-founders’ strong belief in karma and expressed their intention to supplement the recoveries achieved through the formal liquidation process. He noted that several creditors have already been made whole and acknowledged that those who prefer not to engage with them would have that option.
“We firmly believe that by doing good and offering creditors a chance to recover more, we can create a positive impact. If we falter and they prosper, then that’s great. It’s about good karma or whatever you choose to call it.”
Kyle Davies, 3AC’s co-founder
Controversy surrounding OPNX launch
The co-founders’ announcement comes amid scrutiny over their involvement in a new crypto exchange, OPNX, launched on April 4.
Critics within the crypto community have raised concerns about the duo appearing to evade responsibility for the collapse of their previous hedge fund while pursuing a new venture from the picturesque beaches of Bali.
Davies, however, emphasized that their new entrepreneurial journey had a direct connection to the creditors, who would ultimately benefit from their latest undertaking.
OPNX claims to have 20 million users with $20 billion in claims, as notable players like Celsius Network and FTX have sought Chapter 11 protections due to the market volatility witnessed in the past year.
Three Arrows Capital filed for Chapter 15 bankruptcy protection on July 1, 2022. Court documents revealed that the firm owed $3.5 billion to 27 crypto firms, and liquidators seek to recover $1.3 billion from Davies and Su personally.
While the path to recovery remains challenging for Three Arrows Capital’s creditors, the co-founders’ commitment to donate future earnings from their new crypto venture represents a unique effort to address the losses suffered by those affected.
Whether this gesture will help restore trust within the crypto community and facilitate a more positive outcome for the creditors remains to be seen.
