3AC, Coinflex Founders Raise $25M For Claims Trading Exchange
Zach Anderson Jan 16, 2023 02:21
The creators of bankrupt crypto hedge firm 3AC are raising funds for a new cryptocurrency exchange. Their pitch deck seeks $25 million. Presentations call the new exchange GTX. On June 27, 3AC went bankrupt, and Su and Davies disappeared.
It has been claimed that Su Zhu and Kyle Davies, the founders of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC), are attempting to raise capital for a new cryptocurrency exchange in cooperation with Mark Lamb and Sudhu Arumugam, the creators of Coinflex.
It was stated in their pitch deck that they are aiming to fund $25 million. According to the presentation, the name "GTX" has been decided upon for the new exchange that is being considered. They plan to exclusively pursue lawsuits against companies that have already declared bankruptcy.
Users of FTX are selling their claims for less than 10% of their face value in order to get quick money. The alternative is to wait for the bankruptcy to complete payouts, which might take more than ten years.
In contrast to the other operators of claims markets, GTX would provide consumers the ability to utilize their claims as collateral for trading. They said that the planned exchange might fill the power vacuum created by FTX and grow into regulated markets such as the stock market if it were established.
The cryptocurrency exchange Coinflex temporarily banned all withdrawals in the month of June, but it started accepting certain withdrawals again in July.
During the same month, it filed a lawsuit against an individual user in the Hong Kong court system in an effort to cover a hole in its balance sheet that was worth 84 million dollars. It is now going through the process of reorganizing itself.
On June 27, 3AC was put into insolvency due to unforeseen circumstances, and Su and Davies vanished. According to reports, they are both now residing in Indonesia and the United Arab Emirates, respectively.
In November, Su made her comeback on Twitter, and since then, she has been using the platform to make accusations that FTX and Digital Currency Group were involved in a conspiracy to bring about the collapse of 3AC. Following Su and Davies' refusal to accept service via their lawyers in Singapore, where the company's headquarters are located, subpoenas were sent to them on Twitter on January 5.
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