Davies described the plan as a"shadow recovery process," outside the ongoing liquidation proceedings that are trying to recover value from the bankrupt company and distribute it to creditors. In fact, some early creditors have already been made whole, he said.
The failed hedge fund manager said he and his co-founders believed in"karma" and that any of these extra donations would supplement any recoveries through the formal process. The comments might be taken with a grain of salt by a crypto community and creditors who are still nursing losses from the epic collapse.
"The founders of Three Arrows have willfully ignored multiple requests to assist with this process after initiating the liquidation themselves, and the court records paint a clear picture of the ways in which they have hindered creditor recoveries," Jack Coster, managing director at Teneo, the 3AC liquidator, said in an email to CoinDesk, when asked for a response to Davies's comments.
Davies made the comments after being asked about the optics of him and Su Zhu, the other co-founder, working on a new crypto exchange from the beaches of Bali, while their previous company was undergoing a liquidation process. He said that there is a"connection" between their new venture and creditors, who will in fact benefit from their new enterpreneurial journey.