The founders of the bankrupt crypto hedge fund Three Arrows Capital, Su Zhu and Kyle Davies, are seeking to raise funds for a new cryptocurrency exchange called GTX. They are partnering with Mark Lamb and Sudhu Arumugam, co-founders of Coinflex, for this new venture.
According to the pitch deck, the founders are seeking $25 million in seed funding.
When asked by crypto media outlet Wu Blockchain, Su Zhu confirmed that the news is true by stating, “yes, no comment, just busy building it.”
The founding team of GTX believes that the $20 billion crypto claims market should have a public trading platform. They aim to give claimants the ability to convert their claims into cryptocurrency and use them as collateral for trading.
According to the decks, GTX plans to use Coinflex’s technology to build the exchange and a legal team will be responsible for managing the process of accepting claims for bankruptcies in the cryptocurrency industry, including those of Celsius and Voyager.
Two months after the collapse of exchange giant FTX, a new exchange, GTX, is taking advantage of the situation by offering depositors the ability to transfer their claims from FTX to GTX and receive immediate credit in a token called USDG.
The exchange’s name is even a play on “FTX,” with one of the GTX pitch decks starting with the line “because G comes after F.”
The failure of 3AC in July 2022 significantly affected the cryptocurrency market. Many well-known creditors, such as Voyager Digital, Blockchain.com, and Deribit, were affected.
The founders of 3AC disappeared shortly after the company filed for bankruptcy. However, in November, Su Zhu became active on Twitter and accused DCG and FTX of being responsible for the collapse of 3AC.
The community is in shock as the founders are now raising $25 million instead of facing legal consequences. Based on the founders’ background, the community believes GTX means “Grand Theft Exchange.”
In June, Coinflex, a cryptocurrency exchange, temporarily suspended withdrawals but resumed them partially the following month. Additionally, the company filed a lawsuit against a user in a Hong Kong court as it aimed to recover an $84 million deficit on its balance sheet. Currently, Coinflex is undergoing restructuring.
