Believing in the theory of “karma”, the founder of Sanjian will donate future profits to creditors.

Authors: Eliza Gkritsi, Rosie Perper, CoinDesk; Compiled by: Song Xue, Blocking

The two co-founders of the bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) will donate “future proceeds” to creditors who suffered losses after the bankruptcy last year, according to one of the founders, Kyle Davies, on Twitter Spaces hosted by Mario Nawfal on Monday.

Kyle Davies, Su Zhu, and Mark Lamb, co-founders of OPNX. (Source: Kyle Davies/Twitter)

Davies described the plan as a “shadow recovery program” that attempts to recover value from the bankrupt company and distribute it to creditors outside of the ongoing liquidation process. He said that some early creditors have already been compensated in fact.

The failed hedge fund manager said he and his co-founders believed in “karma,” and any additional donations would supplement payments recovered through the formal process.

The cryptocurrency community and creditors may be skeptical of these comments, as they are still suffering from the losses of this epic collapse.

A spokesperson for 3AC liquidator Teneo said: “The Three Arrows founders have actively disregarded multiple requests for assistance in this process, and court records clearly depict how they have obstructed creditors’ recovery.” When asked to respond to Davies’ comments, he said: “We would suggest the founders participate in court-ordered activities that are already underway rather than promising creditors future proceeds of an emerging business.”

Davies said: “We have this process, and over time we will make donations.” “We really believe in this idea that if we do good and we say this thing, and you know it too, then the creditors who lost money will have a way to make more money.”

Davies made the remarks when asked about his and fellow co-founder Su Zhu’s plan to develop a new cryptocurrency exchange on a beach in Bali, while their previous company is undergoing liquidation. There is a “connection” between their new venture and the creditors, who will actually benefit from their new entrepreneurial journey.

Two people have launched a trading platform called Open Exchange (OPNX) for trading bankruptcy claims. The exchange claims that 20 million users have claimed $20 billion after major participants such as Celsius Network and FTX applied for protection under Chapter 11 of the Bankruptcy Code during last year’s market crash. Open Exchange (OPNX), which was announced in February, is less than a year old from the hedge fund’s collapse and $2.5 billion in customer deposits.

Davis said on Twitter that “one of the things we really believe in is karma” and that “there is something greater than all of us.”

When asked about the progress of OPNX on Twitter SBlockingces, Davis said “it’s a journey,” and their daily trading volume is currently around $50 million.

Davis describes the shadow recovery process as not involving tokenized assets.

Currently, only bankruptcy claims from Celsius can be traded on the platform, but according to its website, bankruptcy claims from FTX, Genesis, BlockFi, Voyager, Hodlnaut, Mt. Gox, Vauld, Zipmex, and even Three Arrows Capital “are coming soon”.

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