Founders Of 3AC Raising $25M For Latest Crypto Exchange GTX

Su Zhu and Kyle Davies, the founders of the failed crypto hedge fund Three Arrows Capital (3AC), are reportedly trying to raise capital for GTX, a brand new cryptocurrency exchange in collaboration with Coinflex’s Mark Lamb and Sudhu Arumugam. In line with the pitch deck, the corporate seeks $25 million to begin. 

The founders’ goal is to ascertain a coalition that can launch a cryptocurrency market specialized to the claims of unsuccessful ICOs.

GTX Exchange: Will It Compete The Market?

Renowned crypto journalist Wu Blockchain tweeted the story on Monday, stating that the crypto founders aim to boost funds for his or her recent initiative. The journalist claims that Su Zhu verified the news by saying:

The first function of GTX is to permit for the acquisition and sale of bankruptcy claims from collapsed cryptocurrency firms and use such claims as collateral. The GTX team believes that the crypto claims market is value $20 billion, in keeping with the pitch decks which were making the rounds on Twitter. 

GTX customers could trade using their claims as protection. They further claimed that this exchange might fill the gap created by FTX and access other regulated sectors just like the stock market. Because it resembles FTX, the crypto community made fun of the platform’s name, GTX.

In line with the Wall Street Journal, Zhu claims the platform’s vision and objectives might change. He explained that the corporate’s temporary name was meant to be humorous concerning the collapse of FTX. 

Nevertheless, GTX also expects to draw creditors of other failed exchanges, comparable to Celsius and BlockFi, and individuals who lost money when Mt. Gox, the most important cryptocurrency exchange on the time, collapsed in 2014.

Past Picture Of 3AC Crew, Were They Stable?

Within the aftermath of Terra’s collapse in June 2022, Zhu and Davies’ 3AC crypto hedge fund crashed, causing widespread panic and driving several crypto lenders to declare bankruptcy. 

As well as, the 2 co-founders have been issued subpoenas by the Supreme Court of Singapore and the U.S. Department of Justice through Twitter for failing to cooperate with creditors.

3AC had margin calls on their long positions as the value of Bitcoin fell from $28,000 on June 12 to $21,000 on June 14. So to make up the difference within the margin, they began tapping the funds of their other investors, including 8 Blocks’ $1 million.

In line with Danny Yuan, a few of 3AC’s significant stakes were liquidated, which caused the market price to diminish much more. In essence, Three Arrows was losing money and their clients’ money.

Several 3AC lenders claim that the corporate has lost $400 million within the liquidation. Nevertheless, the corporate owes the lender about $30 million since it didn’t pay back the loan by June 27, 2023.

On June 27, 2022, Sky News reported that 3AC had been liquidated by a court within the British Virgin Islands (BVI). The court ruled that the corporation was insolvent and ordered the sale of its assets to refund its debtors.

Crypto total market cap at $947 billion on the day by day chart | Chart: TradingView.com

Featured Image From Coincu, Chart from Tradingview.com.

 

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