The Comeback Story of 3AC Founders: GTX Exchange in the Works

New Ventures from Old Flames

It seems the founders of the well-known collapsed crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, are rolling up their sleeves and jumping back into the cryptocurrency arena. This time, they’re not just planning to splash around in the shallow end; they’ve teamed up with Coinflex co-founders Mark Lamb and Sudhu Arumugam to launch GTX, a new cryptocurrency exchange that aims to snag some serious attention—and maybe even some cash.

A Sea of Claims

Their target? Raising a cool $25 million to facilitate the trading of claims against bankrupt firms. Couple that with the enticing narrative that they’ve presented in their pitch deck and you might just think, “Is this a savvy business move or a wild gamble?”

Why GTX Matters

In their proposal, the GTX exchange distinguishes itself with a unique approach to the claims market. It highlights how FTX users are currently selling claims for a mere 10% of face value. The pitch cleverly capitalizes on the pain points of bankruptcy procedures—nobody likes waiting around for years for their money to trickle back. GTX plans to streamline claims onboarding and aims to become the go-to marketplace for not just FTX claims, but others too, promising to be a game changer.

A Powerful Void to Fill

Let’s not forget, they plan to fill the void left by the notorious collapse of FTX, a title that carries weight in this tumultuous crypto climate. They’re taking a calculated leap into regulated markets, envisioning that GTX could transcend beyond just cryptocurrency. Who knows? One day we might be buying stocks with a dash of Bitcoin collateral!

The Road to Restructuring

The path hasn’t been all sunshine and rainbows though. Coinflex, the exchange that freshly halted withdrawals but partially resumed them soon after, has been in hot water—suffering an $84 million hit to its balance sheet! Sounds like quite the financial piñata, don’t you think? Coinflex is currently in the throes of restructuring, proving that sometimes you need to take a few knocks before you rise again.

Ghosts of Twitter Past

As if this wasn’t enough, Su Zhu and Kyle Davis have been awash in some rather scandalous drama. After 3AC’s liquidation in June, the duo went mysteriously missing, reportedly residing in Indonesia and the United Arab Emirates. Zhu has now resurfaced on Twitter, engaging in some spirited accusations against FTX and the Digital Currency Group, claiming a conspiracy led to their downfall. Sounds like a plot twist from a crypto thriller, right?

Facing the Legal Sword

Despite their elusive nature, the 3AC founders were recently served subpoenas over Twitter. An unconventional approach to legal matters, indeed! It seems social media can be just as effective as a physical mailbox these days—who knew?

Final Thoughts

As the currency tides continue to shift, the impending rise of GTX brings either a beacon of hope for struggling creditors or serves as a reminder of past mistakes. With their eyes set firmly on rebuilding and restructuring, only time will tell if this team of crypto veterans can navigate their way to success this time around.