- He will only donate funds to 3AC creditors who were early supporters of Open Exchange
- 3AC owes $2.8B to two dozen firms, Davies is personally liable for $1.3B
Three Arrows Capital (3AC) cofounder Kyle Davies promised to donate part of the earnings from Open Exchange, his latest crypto endeavor, to creditors who lost money in 3AC’s 2022 collapse, Cointelegraph reported, citing a tweet by Davies.
He cited “good karma”
Davies attributed his decision to “karma” in a July 3 Twitter Space. He designated the plan as a “shadow recovery process," which would be separate from the official liquidation global consultancy Teneo is currently managing.
Offer is only for early supporters
Davies has described the donation as the first of its kind in history. He and a fellow cofounder will only donate funds to 3AC creditors who were early supporters of Open Exchange. He said:
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.
Evasive responses
Davies replied that creditors could “only benefit” from his new venture when asked how he was working on it with 3AC in the middle of liquidation. He sparked a great deal of controversy when he announced the launch of Open Exchange early in April. Some crypto community members criticized him for his new endeavor and for evading responsibilities in relation to the hedge fund’s collapse.
3AC owes two dozen companies $2.8B
3AC announced bankruptcy exactly a year ago. The filing revealed that the company owed $2.8 billion to almost two dozen firms.
Davies’ location unconfirmed, owes $1.3B
Liquidators were compelled to serve Davies with a subpoena via Twitter on January 5 because they couldn’t find him. In June, the New York Times reported that Davies and a fellow Open Exchange cofounder were surfing in Bali. Liquidators announced they were trying to recover $1.3 billion from Davies personally.
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