The founders of failed hedge fund Three Arrows Capital are investing $25 million in a claims-focused crypto exchange (3AC).
The new exchange will concentrate on trading bankruptcy proceedings brought by bitcoin companies like Mt. Gox and Celsius.
in trading claims is being funded with $25 million by the founders of the now-defunct hedge fund Three Arrows Capital (3AC).
The creators of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC) and the cryptocurrency exchange CoinFlex, su zhu and Kyle Davies, are apparently seeking to raise $25 million in order to establish a new exchange dubbed GTX. Two distinct presentation decks include this material. The focus of the new exchange will be trading bankruptcy actions filed by cryptocurrency firms including Mt. Gox, Celsius.
More than a million debtors have been left without money since the cryptocurrency behemoth FTX collapsed two months ago. In order to capitalise on the current circumstances, the new exchange offers depositors the option to convert their FTX claims to GTX and earn immediate credit in the form of a token called USDG, according to the pitch deck. The name of the exchange is a pun on the abbreviation "FTX". Even one of the GTX pitch decks' opening lines, "Because G follows after F,"
GTX intends to fill a void in the cryptocurrency industry by entering the $2 trillion stock securities loan business. The Three Arrows team has joined forces with CoinFlex founders Mark Lamb and Sudhu Arumugam to form a partnership. A cryptocurrency exchange called CoinFlex is now restructuring. CTO Kent Deng, a former employee of Alibaba, Tencent, and Huawei, and CMO Leslie Lamb, a former head of institutional sales at Amber Group, are just a couple of the well-known people working on the new initiative.
Prior to the collapse of the Terra ecosystem in November of last year, Three Arrows Capital was one of the strongest hedge funds in the cryptocurrency industry. However, the incident is currently causing it to incur considerable losses. On January 5, Singaporean authorities authorised the 3AC liquidators to use Twitter to deliver subpoenas to the company's founders. This licence was granted pursuant to an order of an American bankruptcy court.
According to the plan, GTX would develop the exchange utilising Coinflex's platform and appoint a legal counsel to supervise the onboarding of claims for all previously insolvent cryptocurrency businesses, including BlockFi and Voyager. The new exchange plans to begin operating, probably in February.
