3AC co-founders, Kyle Davies and Su Zhu, once at the helm of a now-bankrupt hedge fund, have embarked on a new journey in the realm of cryptocurrencies with their recent launch of the crypto exchange OPNX. Amid the shadows of their past, they are determined to pave a path towards redemption and restitution for creditors who suffered from the fallout.
During a Twitter Space event, Davies passionately expressed his belief in “karma” driving him to make amends and outlined their novel plan to contribute to creditor recoveries through the proceeds generated by OPNX.
As they navigate this uncharted territory, Davies and Zhu strive to turn a new leaf and provide a glimmer of hope for those who were once left in financial turmoil.
3AC Introduces Innovative ‘Shadow Recovery Process’
The founders behind the now-defunct hedge fund Three Arrows Capital have devised an initiative they refer to as the “Shadow Recovery Process” (SRP).
This novel approach, distinct from the official liquidation process managed by global consulting firm Teneo, aims to provide a means of payback to those creditors who have shown early support towards their newly-launched crypto exchange, OPNX.
On Twitter Spaces, Davies enthusiastically revealed the essence of this pioneering SRP, emphasizing its independence from the conventional channels.
He described it as a remarkable way for both himself and Su to donate funds to 3AC creditors, particularly those who have been proactive and steadfast in backing the development of OPNX.
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Highlighting the voluntary nature of the SRP, Davies asserted that creditors who may not wish to be involved or have reservations about dealing with them would not be compelled to participate.
By leveraging this innovative mechanism, Davies and Su seek to make amends and give back to those who have extended their unwavering support, thereby forging a new path of redemption in their entrepreneurial journey.
3AC’s Bold Move
The launch of the crypto exchange OPNX merely months after 3AC’s bankruptcy protection filing has stirred curiosity and raised eyebrows among observers.
Court filings revealed a staggering $3.5 billion liability owed to 27 crypto firms, with Genesis Asia Pacific Pte Ltd, a subsidiary of Digital Currency Group, holding the position of the largest creditor after lending $2.3 billion to the now-defunct hedge fund.
In light of these substantial liabilities, Davies remains undeterred and optimistic. Despite the past financial turmoil that impacted numerous creditors in the wake of 3AC’s downfall, Davies firmly believes that the innovative Shadow Recovery Process introduced through OPNX presents an opportunity for these creditors to recoup more of their lost investments.
He said:
“If we do bad and they do well, then that’s great,” he said. “And that’s good karma, or whatever you want to call it.”
Featured image from Alamy