The founders of collapsed cryptocurrency hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, plan to raise $25 million to start a new bitcoin and cryptocurrency exchange called GTX.
The platform would offer depositors the ability to transfer their FTX claims to GTX and receive immediate credit in a token called USDG.
The news of the fundraising comes two months after the implosion of the FTX exchange, which left more than a million users out of pocket.
In fact, the name GTX refers to “FTX”, using the “G” instead of the “F”, “because G comes after F”.
Zhu and Davies partnered with Mark Lamb and Sudhu Arumugam, founders of CoinFlex, a cryptocurrency exchange that is in the process of restructuring.
GTX will use CoinFlex’s technology to build its platform. Indeed, its executive team is also composed of several CoinFlex executives, in addition to the company’s general counsel and chief technology officer.
A legal team will be responsible for overseeing the incorporation of claims for recent cryptocurrencies, such as Celsius and Voyager.
The exchange will possibly launch in February and estimates the claims market to be worth around $20 billion.
Critics were quick to criticize
Nic Carter, founding partner of Castle Island Ventures, likened the GTX launch to “arsonists returning to the scene of the crime, throwing buckets of water on their victims”.
GTX – arsonists returning to the scene of the crime, hawking buckets of water to their victims
— nic carter (@nic__carter) January 16, 2023
Wintermute founder and CEO Evgeny Gaevoy warned that anyone investing in GTX would find it difficult to work with his firm in the future.
And since we are talking about cancelling stuff, if you are investing into coinflex/3ac "exchange" you might find it a bit more difficult to work with wintermute in future (on the relationship building side)
— wishful cynic (@EvgenyGaevoy) January 16, 2023
“Similarly, we will not participate in venture rounds where these guys are about to enter the capitalisation table, so founders should be careful,” he added.
And since we are talking about cancelling stuff, if you are investing into coinflex/3ac "exchange" you might find it a bit more difficult to work with wintermute in future (on the relationship building side)
— wishful cynic (@EvgenyGaevoy) January 16, 2023
Three Arrows Capital was one of the largest hedge funds in the bitcoin and cryptocurrency world until the collapse of the Terra ecosystem last year left it facing significant losses.
Financial advisory firm Teneo was handling the liquidation of 3AC’s assets and the hedge fund filed for Chapter 15 bankruptcy in New York.
Zhu and Davies were silent for some time after the hedge fund’s collapse, but both resurfaced on social media recently. They are thought to be in Dubai and Bali, respectively.
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