OPNX Crypto Exchange to Transfer Part of Profits to 3AC Lenders
Date: 2023-07-04 Author: Karina Ziganova Categories: BUSINESS
The co-founders of bankrupt crypto hedge fund Three Arrows Capital (3AC) have pledged to give a portion of the proceeds from their new crypto exchange to lenders who lost money in the fund's collapse in 2022.
3AC co-founder Kyle Davis said that donating potential earnings from the Open Exchange (OPNX) would be "good karma." He described the scheme as a "shadow recovery process" that would not depend on the formal liquidation process of the fund.
Calling the process "the first of its kind," Davis noted that he would return some of the money to 3AC's creditors only if they supported OPNX. According to him, there are already a number of creditors who agree to such conditions.
"We're doing the good and telling creditors who have lost money that they have a way to get more funds back. If we do badly and they do well, then that's great. And that's good karma," Davis said.
3AC bankruptcy
On July 1, 2022, 3AC filed for Chapter 15 bankruptcy protection. Court documents showed that the bankrupt fund owes about $2.8 billion to more than 20 different firms.
Now the liquidators of the fund want to recover $ 1.3 billion from the co-founders of the bankrupt company Suu Zhu and Kyle Davis. The liquidators plan to recover an amount equal to the company's losses at the time of bankruptcy.
New business
After filing for bankruptcy, the founders of the fund repeatedly ignored court requests for payments to creditors and launched a new business - the OPNX crypto exchange. According to media reports, by filing for bankruptcy, 3AC wants to avoid confiscation of the fund's assets in the United States.
Su Zhu and Davis created a new crypto exchange with Coinflex's Mark Lamb in early April 2023. The launch of the platform was accompanied by an airdrop of the FLEX token. It was received by community members as a "token of appreciation". The platform focuses on trading claims related to bankrupt exchanges.
Later, the crypto platform decided to revive the scandalous fund by launching a venture fund called 3AC Ventures. A partnership with the OPNX exchange helped to revive the bankrupt.
