The founders of Three Arrows Capital, the $4B “hedge” fund that blew up during the Terra Luna crash are already onto their next venture.

Apparently they’re raising $25M for a exchange focused on trading claims — some of them, quite curiously, created by their own downfall.

Crypto is known for being a Wild West, where many people deemed disgraced elsewhere come for redemption arcs. It was the case of Adam Neumann from WeWork, Mike Novogratz (who previously failed at the hedge fund Fortress) and many others.

If there’s no foul play — only incompetence, carelessness or plain bad luck — I think we, as a society, benefit from giving people second or third shots. After all, many of the greatest builders in history failed spectacularly at least once. Henry Ford, Walt Disney and many others.

The problem lies when we’re still in the middle of the process of finding out how much of the failure was bad faith, and how much poor management was happening.

The people who lost money on Gemini Earn (operated by Genesis, one of the main creditors of 3AC) may take offense at the fact that the founders are onto their next thing, for example.

See you tomorrow.