Kyle Davies and other co-founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC), announced that they would donate a certain portion of earnings from the crypto exchange OPNX to 3AC creditors who lost money in the collapse. Davies launched OPNX in April this year with fellow 3AC co-founder, Su Zhu. Davies said that donating OPNX's potential earnings to the creditors would be good karma. - Davies added that the scheme would be independent of the official liquidation process.
- 3AC creditors will be only able to receive funds from OPNX earnings if they are early supporters of the exchange.
- Davies said on Twitter that there are already many creditors who fully recovered their funds.
- At the time of OPNX's launch, Davies and Zhu pointed out that the new exchange mainly aims to support the trading of user assets in the form of tokens stuck on bankrupt crypto platforms, including FTX and Celsius.
3AC filed for bankruptcy in July 2022 due in part to the prolonged crypto winter triggered by the multi-billion dollar collapse of Terra in May. - The bankruptcy filings showed that the collapsed fund owed around $2.8B to more than 20 firms.
- Founders Kyle Davis and Su Zhu were held responsible for the failure and for the multi-billion dollar losses suffered by many people after the bankruptcy.
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