Su Zhu and Kyle Davies, founders of bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) are reportedly trying to raise money for a new cryptocurrency exchange in partnership with Coinflex founders Mark Lamb and Sudhu Arumugam. According to the presentation platform, they are aiming to raise $25 million.
According to the bid, the proposed new exchange will be called GTX. They suggest specifically targeting claims against bankrupt companies. “FTX users sell balances at around 10% of face value for immediate liquidity or wait more than 10 years for bankruptcy to process payments,” the filing said. Promise to enter the claims market:
“Our legal team will simplify and automate the consolidation of claims into GTX and make it the dominant market for claims of FTX and other bankrupt companies.”
Unlike competing claims market operators, GTX will allow clients to use claims as collateral for trading. Moreover, they said the proposed exchange could “fill the energy vacuum left by FTX” and expand into regulated markets such as the stock market.
Cryptocurrency exchange Coinflex suspended withdrawals in June but resumed partial withdrawals the following month. It also sued an individual user in a Hong Kong court that month because it tried to plug an $84 million hole on its balance sheet. It is now in the process of restructuring.
3AC co-founders Zhu Su and Kyle Davis and CoinFlex co-founders have launched a new venture, GTX, which is raising $25 million in seed funding to negotiate creditor claims. Su Zhu admitted the news to WuBlockchain: “Yes, no comment, just busy building.”
WuBlockchain January 16, 2023
3AC was forced to liquidate on June 27 and Sue and Davis disappeared. They are now located in Indonesia and the United Arab Emirates respectively. Su returned to Twitter in November and used it to accuse FTX and the Digital Currency Group of plotting to bring about the downfall of 3AC. Su and Davies received subpoenas via Twitter on January 5 after they refused to accept the subpoena through their lawyers in Singapore, where the company is headquartered.