A recent report showed that the founders of the bankrupt Three Arrows Capitals, Kyle Davies and Su Zhu, recently revealed their procedures to repay their debtors. However, many liquidators were reportedly displeased with the whole idea.
According to the report, the founding duo of the collapsed Three Arrows Capital (3AC), Davies and Zhu reportedly held Twitter spaces with their creditors to communicate their planned procedure to recover the funds lost during the collapse.
However, the whole plan did not go down well with the liquidators, and they were reportedly angry at the CEOs recovery plan. In fact, the liquidators reportedly sent virtual subpoenas to the founders since Twitter was their point of communication now.
Furthermore, the report stated that the Twitter Spaces addressed sensitive questions concerning the creditors. And as revealed by the bankruptcy file, 3AC has about 27 creditors, of which some have also collapsed.
Currently, 3AC, which was once a successful cryptocurrency hedge fund, has incurred about $3.5 billion in liabilities. Furthermore, the liquidators were able to raise about $6.2 million in sales of the 3AC NFT collections.
Further information revealed that both Davies and Shu are currently on the run to Bali. Si Zhu was reportedly seen passing the time with video games, meditation, and ocean surfing. At the same time, Kyle Davies was reportedly seen painting in restaurants.
In addition, recent news revealed that the duo might be planning to flee to Indonesia next as they would be relatively safe from Interpol since the US and Indonesia have no extradition treaty.
3AC Founders Propose Shadow Repayment Procedure
Notably, Kyle Davies recently revealed that he would donate his future earnings towards repaying the victims who lost their funds when Terra (Luna) collapsed and caused a ripple effect that unfortunately took out about $2 trillion cryptos in the market.
And if recalled, it was this invent that caused the collapse of 3AC and other crypto firms like Genesis and Voyager Digitals. Nonetheless, Davies said the donation he proposed should be added to the funds which liquidators already recovered legally.
In his words, Kyle Davies called himself a firm believer of Karma, hence he is willing to help victims of the collapse recover their funds through debt claims.
To do this, the report showed that the two founders issued a new crypto exchange based on debt claims dubbed OPNX. According to reports, the exchange had a low and slow beginning as it produced a ridiculous amount of trades in its first few days of existence.
However, the volume of trades picked up subsequently. In the last 24 hours, the exchange recorded a whopping $38,818,597 trade volume in BTC/USDT pairs. Furthermore, the exchange issued a native token dubbed Open Exchange (OX).
According to reports, OX has gained about a 230% increase since its launch. Currently, crypto enthusiasts are still monitoring how much the self-acclaimed Karma believer would go on the recovery plan.
3AC Liquidators Wants Founders To Corporate
Nonetheless, the bankruptcy case is still in progress as Teneo liquidators remain in charge. They have continually reported to the court that the two founders have been evading real-life meetings and Zoom calls.
After the recent Twitter Spaces held by 3AC founders, Crumpler & Farmer of the Teneo liquidator stated that the founders on the run should participate in court-ordered activities instead of promising the future earnings of their young startup to creditors.
The liquidators also accused the fleeing duo that they initiated the bankruptcy proceeding but later refused to take part in activities and also shunned all contacts with the liquidation agents on purpose.
The two fugitives continue to snub emails and subpoenas that the Teneo liquidators have been sending to them since the start of the case. Furthermore, Davies refused to explain how the repayment process would work during the Twitter spaces.
However, so far, the liquidators have raised about $1.3 billion from sales of cryptocurrencies and NFTs that 3AC holds. In addition, experts think the 3AC situation can help facilitate the creation of a clearer crypto regulatory framework.