Bankrupt 3AC founders Kyle Davies and Zhu Su launch new exchange for crypto claims trading

Three Arrows Capital (3AC) was among the first few crypto companies to fall in July 2022, which initiated the first contagion in the market. The bankrupt hedge fund has since been left to liquidators to make the most of its remaining assets. But instead of fulfilling their duties and responsibilities towards 3AC, the founders are busy launching a new crypto exchange.

3AC founders introduce Open Exchange

Three Arrows Capital founders, Kyle Davies and Zhu Su, launched the first-of-its-kind cryptocurrency exchange. Named as the Open Exchange, OPNX will be the public marketplace for crypto claims trading & derivatives. However, over the coming months, Open Exchange will build out fully decentralized custody/clearing, then stocks/FX and innovative products.

Zhu Su further stated that the exchange is currently in the Waitlist phase and that going forward, the name of the native token for the exchange is set to be FLEX. Discussing the collapse of Three Arrows Capital, Su stated,

"It was a dark period, and we were not perfect in how we handled the fallout, but we were determined to do all we could…We talked to creditors, trying to fix things as best we could amidst a constant onslaught of media dis/misinfo & valid criticism of hubris in between but in the end, words & liquidations can only go so far. we knew what we had to do was build something that takes all the pain/lessons & uses it to advance crypto. it was an interesting synchronicity that mark (coinflex ceo) and i reconnected again at exactly that moment. (sic) "

Discussing Open Exchange, Zhu Su stated that the team would be conducting real-time public cryptographic audits to confirm every balance, liquidation, withdrawal, deposit, and trade is correct - & ensure all user funds are provably untouched.

Kyle Davies and Zhu Su ignore subpoenas

The founders of the bankrupt exchange, while on the one hand are building a new platform, on the other, they are not even attempting to fulfill their responsibilities towards their former company, Three Arrows Capital. Despite being subpoenaed multiple times, Kyle Davies and Zhu Su continue to distance themselves from the liquidation proceedings.

To deal with this issue, the bankruptcy courts even authorized the use of unconventional methods such as subpoenaing through Twitter. However, that failed to produce any results as well.