GTX Seriously? 3AC Founders Return With New Exchange
Meet GTX exchange – a controversial project backed by controversial figures.
Rumors that 3AC founding members Zhu Su and Kyle Davies are part of a new cryptocurrency exchange have circulated on Twitter in the past couple of hours.
Accordingly, the two founders of the defunct business are trying to raise $25 million for their new venture GTX.
A pitch desk shared across Twitter shows that the new project also sees the participation of Mark Lamb and Sudhu Arumugam, the two co-founders of CoinFLEX exchange. Both CoinFLEX and 3AC are linked to the collapse of Terra (LUNA) last year.
3AC announced insolvency in mid-2022 while CoinFLEX suspended customers’ withdrawals, citing the market downturn.
The news of GTX’s fundraising marked the return to the market of 3AC founders. The name “GTX,” as suggested in the pitch desk, is made up from “FTX” with the replacement of letter “G.” Interestingly, the team chose it “because G comes after F.”
Upon this comeback, GTX is said to offer trading services using claims against bankruptcy companies as collateral. “FTX users are selling claims at ~10% face value for immediate liquidity or waiting 10+ years for the bankruptcy to process disbursements,” as written in the document.
In addition to the new idea, GTX also aims to change how people currently look at the exchange segment, as well as expand to the $2 trillion securities lending market.
GTX’s filing states that the crypto asset segment in the bankruptcy dispute is currently valued at up to $ 20 billion, mainly coming from platforms that have collapsed in the past such as FTX, BlockFi, Celsius, etc.
Since 3AC went bankrupt last year, the founding team including Zhu Su and Kyle Davies has disappeared without trace.
The two figures reportedly moved to other countries. Davies resided in Bali while Su moved to Dubai. However, the founders of 3AC recently became talkative on Twitter following the FTX’s crash.
After a long period of silence, Zhu Su and Kyle Davies actively posted comments on FTX – Alameda case. Su also accused FTX of playing bad behind 3AC’s back, pushing the firm to bankruptcy decision.
Su also pointed out the conspiracy of DCG – Genesis in bringing 3AC down after learning the involvement of these parties in FTX contagion.
Three Arrows Capital was once a prominent hedge fund in the crypto sector. But after the market hit the roadblock and prices started plummeting, 3AC’s assets were wiped out and the company was forced to file for bankruptcy protection.
The collapse of the leading venture triggered a domino effect on the market. A long list of partners or companies whose money depends on the viability of this fund faced a liquidity crisis.
CNBC previously reported that cryptocurrency exchange Blockchain.com had loaned 3AC $270 million.
The defunct firm also failed to repay a $670 million debt to Voyager Digital, leading to the partner’s latter filing for Chapter 11 bankruptcy protection. Cryptocurrency lenders Genesis and BlockFi, and cryptocurrency exchange FTX suffered financial problems as a result of 3AC’s crash.
Three Arrows Capital’s creditors alleged that Zhu Su and Kyle Davies were uncooperative during the bankruptcy process.
In December 2022, the federal judge overseeing Three Arrows Capital’s bankruptcy proceedings granted approval to subpoenas against former hedge fund executives, including the company’s co-founders.
The court order permits the liquidators to demand that the parties in issue hand over to them all recorded information, including books, documents, registers, and papers about Three Arrows Capital dating back to the company’s founding in 2012.
Company executives will now, unless agreed by the parties, have to comply with the conditions of this subpoena within 14 days.
Three Arrows Capital’s assets, according to the fund’s liquidator, have only been reimbursed to the extent of $35.6 million, despite the fund being owed up to $3.5 billion.
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