3 Arrows Capital (3AC) founders Su Zhu and Kyle Davies are attempting to raise $25 million to launch a new cryptocurrency exchange called GTX.
The announcement of the fundraising comes two months after the collapse of exchange behemoth FTX, which left more than a million debtors unpaid. According to the presentation deck, the new exchange takes advantage of the circumstance by allowing depositors to convert their FTX claims to GTX and earn instant credit in a token called USDG.
Even the exchange's name is a play on "FTX," starting with the phrase "because G comes after F" in one of the GTX pitch decks.
The founders of the crypto exchange CoinFlex, who are in the midst of rebuilding it, Mark Lamb and Sudhu Arumugam, are collaborating with the Three Arrows team. According to one of the decks, many CoinFlex executives, including the company's general counsel and chief technology officer, make up the exchange's executive team.
According to the presentation, GTX will use Coinflex's technology to create the exchange, and a legal team will be in charge of managing the onboarding of claims for all recently bankrupt cryptocurrencies including Celsius and Voyager.
Before the collapse of the Terra ecosystem last year, Three Arrows Capital was one of the biggest cryptocurrency hedge funds. The assets of 3AC are being liquidated by the financial advice company Teneo, and the hedge fund has filed for Chapter 15 bankruptcy in New York.
After the failure of the hedge fund, Zhu and Davies both kept silent for a while, but they have recently come back to social media. It is thought that they are in Bali and Dubai, respectively.
