Crypto Hedge Fund Co-Founders Promise Creditors Donation

The co-founders of the defunct crypto hedge fund Three Arrows Capital (3AC) have pledged to donate a portion of profits from their newest crypto venture to creditors who lost money in the collapse of the fund in 2022.

The proposed repayment scheme was characterized by Davies as a “shadow recovery process” that would be separate from the official liquidation process presently being administered by the global consulting firm Teneo.

As the “first” of its kind, Davies asserted that it would enable him and Su to donate funds to 3AC creditors, provided they were “early and supportive” of OPNX.

He stated that a “number of creditors” have already been made whole. “If there are those who do not wish to deal with us, they are free not to,” he added:

“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.”

When asked how he could be working on a new venture while his now-defunct hedge fund was still in liquidation, Davies claimed that creditors would only “benefit” from the new business.

Davies and Su courted controversy when they announced the launch of OPNX on April 4, with some members of the crypto community criticizing the duo for launching a new venture while ostensibly avoiding their responsibilities with the failure of their hedge fund.

On July 1, 2022, 3AC filed for Chapter 15 bankruptcy protection, with subsequent court documents revealing that the defunct fund owes approximately $2.8 billion to more than 20 separate companies.

Due to difficulties in locating them, liquidators were compelled to serve them subpoenas via Twitter on January 5, as their location remains unknown.

According to a recent New York Times article, Davies and Su spent the majority of their time surfing in Bali.

Most recently, on June 27, liquidators disclosed they are pursuing a total of $1,300,000,000 in missing funds from Davies and himself.