According to two distinct presentation decks, Su Zhu and Kyle Davies, the founders of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC) & crypto exchange CoinFlex — are seeking to raise $25 million in order to launch a new exchange, named GTX. The new exchange will focus on trading bankruptcy claims filed by crypto enterprises like Mt. Gox, Celsius, BlockFi and the latest FTX.
Trading Bankruptcy Claims
The announcement of the fundraising comes two months after the collapse of the crypto giant FTX, which left more than a million debtors without their money. According to the pitch deck, the new exchange makes use of the current circumstances by providing depositors with the opportunity to transfer their FTX claims to GTX and earn immediate credit in the form of a token called USDG. The name of the exchange is a play on the acronym “FTX.” In fact, one of the pitch decks for GTX begins with the sentence “because G comes after F.”
Read More: Check Out The Top Crypto Telegram Channels Of 2023
GTX intends to fill the void in the crypto market and enter the stock securities lending sector, which is estimated to be worth 2 trillion dollars. Mark Lamb and Sudhu Arumugam, the founders of CoinFlex, a cryptocurrency exchange that is in the process of restructuring, have joined forces with the Three Arrows team to form a partnership. Other notable individuals, such as CTO Kent Deng, a former employee of Alibaba, Tencent & Huawei and CMO Leslie Lamb — a former head of institutional sales at Amber Group, are also involved in the new project.
3AC’s GTX Launching Soon
Before the debacle of the Terra ecosystem in November of last year, Three Arrows Capital was one of the top hedge funds in the cryptocurrency industry. However, it currently suffers enormous losses as a result of the event. On January 5, the liquidators of 3AC were given permission by Singaporean authorities to serve subpoenas on the 3AC founders via Twitter. This authority was granted in response to an order from a bankruptcy court in the United States.
According to the decks, GTX will use Coinflex’s technology to establish the exchange, and a legal counsel to manage the onboarding of claims for all of the recent crypto companies that have gone bankrupt, such as BlockFi & Voyager. The new exchange is planning to begin operations likely in the month of February.
Also Read: Bitcoin Miners Can End BTC’s Recent Price Rally – Here’s Why