Upon the bleak backdrop of the collapse of Three Arrows Capital (3AC), words of restitution are like whispers in the wind. Kyle Davies, one of the co-founders of 3AC, proffered a beacon of hope to its creditors, promising them “future earnings” through a method he dubs as a “shadow recovery process”. However, whether this recompense is filled with substance or mere platitudes is a question probably echoing in the minds of the recoverant creditors.
While the liquidation proceedings are still in process with the aim of recovering value and distributing it among the creditors, Davies’ parallel plan of recovery has stirred a whirlpool of skepticism or perhaps even disbelief. The commitments from Davies about rectifying past wrongs only serves to operate as a band-aid over a wound that has perhaps indefinitely marred the trust of creditors and the wider crypto community.
Jack Coster, the managing director at Teneo, the 3AC liquidator, voices herein the suppressed grudge of creditors in a rather pointed remark. He voiced that Davies and his co-founder should spend their time engaging in the court-ordered activities already initiated rather than promising earnings from an undeveloped venture. Davies’ olive branch thus may seem less like a promise of resolution and more like salt on a wound for the aggrieved creditors.
Yet, the founding duo remains unflappable in the face of criticism. They’ve launched a new platform called Open Exchange (OPNX), a trading platform designed to trade bankruptcy claims—an ironic twist considering the circumstances of their previous company. Now on the sandy beaches of Bali, Davies details a connection between the creditors and their newly minted entrepreneurial enterprise, a journey that Davies remains optimistic will be beneficial for creditors. Despite this, the question remains of whether the creditors are prepared to take a leap of faith into the ocean of uncertainty that is their new enterprise.
Davies speaks of “karma” and an unseen power that governs the universe—an ironic faith from the co-founder of a bankrupt fund. The success of their new venture OPNX stands alongside an uphill battle of restoring faith and trust from an embittered community. Currently, the platform only hosts claims from the lender Celsius, but, as mentioned on its website, claims from the bankruptcies of FTX, Genesis, BlockFi and even Three Arrows Capital are expected to be coming soon. The success of OPNX provides a stark contrast to the dismal situation the co-founders find themselves in and may be seen as a ground for redemption or a testament to their audacity.
Source: Coindesk
