Su Zhu and Kyle Davies, the co-founders of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC), are apparently attempting to gather money for a new crypto exchange in collaboration with Mark Lamb and Sudhu Arumugam, the co-founders of Coinflex. They want to raise $25 million, according to the pitch deck.
According to the presentation, the new exchange being considered will be called GTX. They suggested concentrating their efforts on claims against insolvent businesses. The documents stated that "FTX users are either waiting 10+ years for the bankruptcy to execute payouts or selling claims at 10% face value for instant liquidity." It made a claim to disrupt the claims market:
"Our legal team will automate and accelerate the claims onboarding process to GTX, making it the primary marketplace for claims from FTX and other bankrupt corporations.” the document statement.
Contrary to rival claims market providers, GTX will permit users to utilize claims as trading collateral. The planned exchange could also "fill the power vacuum left by FTX," they added, and extend into regulated markets like the stock market.
Coinflex, a cryptocurrency exchange, stopped accepting withdrawals in June but started doing so again in July. In an effort to close an $84 million shortfall in its balance sheet, it also filed a lawsuit against a single user in a Hong Kong court the same month. It is now undergoing restructuring.
On June 27, 3AC was put into insolvency, and Su and Davies vanished. According to reports, they are currently residing, respectively, in Indonesia and the United Arab Emirates. Su rejoined Twitter in November and has since accused FTX and Digital Currency Group of working together to bring about 3AC's demise.
Su and Davies refused to accept legal services through their attorney in Singapore, where the business is located, therefore on January 5 they were issued subpoenas via Twitter
