- Three Arrows Founders wants to launch a $20 billion exchange in collaboration with CoinFlex by giving succor to users of bankrupt exchanges FTX.
Founders of Three Arrows Capital, a collapsed crypto hedge fund plan on a $25 million fundraising to start a new crypto exchange, GTX. This move was disclosed in two pitch decks reported. The exchange, GTX is likely to launch in Q1 and claims a $20 billion market worth.
Su Zhu and Kyle Davies have been off social media since Three Arrows Capital collapsed and resurfaced with plans to start a new crypto exchange and convert FTX’s creditors.
The founders are pushing the new crypto exchange launch in partnership with the founders (Mark Lamb and Sudhu Arumugam) of a restructuring exchange, CoinFlex. One of the pitch decks stated that the new exchange, the GTX executive team has the majority of CoinFlex executives on board, report shows.
While FTX struggles amidst court action and investors’ law files, Su and Kyle offer FTX’s depositors a platform to transfer their FTX holding and immediate credit on their FTX claims.
FTX imploded and the event left over a million creditors on the verge of losing their funds. According to the pitch deck, the founders’ offer to FTX creditors includes reimbursing them in a token they referred to as USDG.
The 3AC founders seem to be taking advantage of the FTX event to make a comeback, additionally naming the new exchange in FTX similitude, GTX.
Su and Kyle are looking to build the exchange on CoinFlex technology with a legal team overseeing the onboarding claims.
What happened to Three Arrows Capital?
Three Arrows Capital, in November 2022 filed for Chapter 15 bankruptcy in New York bringing to an end its presence as one of those who managed over $10 billion in creditors’ assets. Following Voyager Digital’s halting trading and withdrawal, due to unpaid loans to Three Arrows Capital
3AC tried to manage liquidity risk but went insolvent. 8 BlocksCapital afterward came up with claims that 3AC skimmed the platform of $1 million, then BitMEX came into the picture of firms 3AC was owing over $6 million. Then, the British Virgin Islands court ordered the liquidation of 3AC, after the firm suffered major losses.
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