In a Twitter space on July 3, 3AC co-founder Kyle Davis stated that it would be [karma" to [donate" potential proceeds from the Open Exchange (OPNX) to 3AC`s creditors.
Davies described the proposed recycling scheme as a "shadow recycling process", separate from the official liquidation process currently managed by global consultancy Teneo.
Davis called it a "first" of its kind in a process he claimed would allow him and Su to donate funds to 3AC creditors, but only if they were "early and supportive" of OPNX.
Already, "some creditors" have gone bankrupt, he claimed. "If someone doesn't want to deal with us, then they don't have to," he added.
"We really believe that if we do a good job, we say to our loss-making creditors, there is a way for them to make more money. If we do a bad job and they do a good job, that's great. That's good karma. Retribution, or whatever you want to call it."
Asked how he would be able to work in a new venture while his now-bankrupt hedge fund was still in the process of being liquidated, Davis claimed creditors could only "benefit" from the new company.
OPNX shrouded in controversy
Davis and Su sparked controversy when they announced the launch of OPNX on April 4, with some members of the cryptocurrency community criticizing the duo for launching a new venture while appearing to be shirking their responsibility for the hedge fund`s collapse.
Three Arrows Capital filed for Chapter 15 bankruptcy protection on July 1, 2022, and subsequent court documents show that the bankruptcy fund owes about $2.8 billion to more than 20 companies.
The location of the pair has not been confirmed, and the liquidators were even forced to issue them a subpoena via Twitter on Jan. 5 due to the difficulty of tracing. A recent New York Times report said Davis and Sue spent most of their time surfing in Bali.
Most recently, on June 27, liquidators announced that they were seeking to recover $1.3 billion in lost funds from the 3AC co-founders.
