Kyle Davies to Donate Earnings from OPNX to 3AC’s Creditors

Kyle Davies, the former co-founder of Three Arrows Capital (3AC) has promised to donate the proceeds from OPNX to 3AC's creditors

Kyle Davies, a co-founder of the now-bankrupt Three Arrows Capital (3AC), has expressed intentions to contribute a share of earnings from his newest crypto exchange (OPNX) to creditors who experienced losses from 3AC’s demise.

🔥Reach more than 5 000 000 real investors via Twitter influencer marketing! 🔥

During a Twitter discussion held on Monday, Davies claimed that it would be “good karma” to donate possible proceeds to creditors.

Funds Recovery Dependent on Creditor’s Support

During the discussion, Davies revealed a proposed “shadow recovery process” aimed at providing additional restitution to 3AC creditors. This alternate plan is expected to function independently of the ongoing formal liquidation process overseen by global consulting firm Teneo Restructuring. 

Davies described it as the “first” of its kind and asserted that it would enable him and his co-founder, Su Zhu, to donate funds to creditors who were early supporters of OPNX. By linking the potential donations to the level of support received for OPNX, the co-founders aim to incentivize creditors to engage with their new venture.

However, Davies emphasized that those who are unwilling to engage with them are not obliged to do so, suggesting that participation in the process is voluntary.

Kyle Davies Raises Defense

When asked about his engagement in a new endeavor while 3AC is in liquidation, Kyle Davies defended his activities by claiming that creditors would eventually “benefit” from the new company.  

Notably, the collapse of Three Arrows Capital was a significant event in the crypto industry, shaking investor confidence. The fallout from the fund’s failure left many creditors grappling with substantial financial losses and raised questions about accountability within the crypto space. 

However, the recent announcement by the co-founders signals a renewed commitment to transparency and making amends.

Liquidators Faces Challenges

One notable challenge faced by liquidators has been the difficulty in locating the co-founders, Kyle Davies and Su.

The pair’s whereabouts remain unconfirmed, leading to the unconventional measure of serving them with subpoenas through Twitter in January. The process of tracking them down has been complicated and has necessitated alternative means of communication to ensure legal proceedings can proceed.

In a recent development, liquidators announced their intent to recover a total of $1.3 billion directly from Kyle Davies personally. This step reflects the severity of the collapse and the urgency to hold accountable those responsible for the losses incurred by creditors.

🔥Reach more than 5 000 000 real investors via Twitter influencer marketing! 🔥