3AC Bosses Eye $25 Million Funding For New Crypto Exchange GTX After FTX Crash

Summary:

• Founding team members also include Co-Founders of troubled exchange CoinFLEX, Mark Lamb, and Sudgu Arumugam.
• The GTX exchange will allow users to trade claims for defunct crypto companies like BlockFi, Celsius, FTX, and Mt. Gox to name a few.
• WuBlockchain confirmed the news from Three Arrows Founder Su Zhu who supposedly said “no comment, just busy building it”. 

Three Arrows Capital (3AC) Co-Founders Su Zhu and Kyle Davies are pitching to investors in a bid to raise $25 million in seed funding for a new cryptocurrency exchange dubbed GTX.

According to the pitch proposal, GTX will allow crypto users to tap into a $20 billion crypto claims market featuring beleaguered entities like BlockFi, Celsius, FTX, and Mt.Gox among others. This means that GTX hopes to offer crypto bankruptcy claims trading. The platform also plans to enter the $2 trillion stock securities lending market. 

WuBlockchain’s team confirmed the news with Su Zhu, Co-Founder of the defunct crypto hedge fund 3AC, who said “yes, no comment, just busy building it”. The team also includes CoinFLEX Co-Founders Mark Lamb and Sudhu Arumugam.

Notably, CoinFLEX buckled under contagion from Terra’s crash in 2022. The platform also limited withdrawals in July and fired a chunk of its team. 

Former Head of Institutional Sales at Amber Group Leslie Lamb will serve as GTX’s Chief Marketing Officer, and Kent Dog who previously worked at Alibaba features as Chief Technology Officer for the new venture. 

3AC Founders Back In The Game

The news about GTX’s pitch to investors comes months after crypto hedge fund Three Arrows Capital blew up in mid-2022. Co-Founder Su Zhu and Kyle Davies disappeared in the aftermath, with reports claiming the pair flew to Dubai. 

Both Zhu and Davies alleged that their long positions were hunted by Alameda Research. The pair also claimed that Sam Bankman-Fried’s companies played a role in 3AC’s collapse, although the disgraced FTX Founder denied the allegations

Several watchdogs including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) started investigating 3AC and its founders for financial malpractice and defrauding investors. 

On January 5, 2023, Zhu and Davies were subpoenaed on social network Twitter as their whereabouts remain unknown to the court and liquidators.