The founders of bankrupt Singapore-based crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, have re-emerged with a new offering: a company called "GTX" that ironically focuses on digital currency bankruptcy claims.
According to a pitch deck originally obtained by The Block, Su and Davies are looking to raise funds with CoinFlex founders Mark Lamb and Sudhu Arumugam for a new exchange, dubbed GTX "because G comes after F," that would enable users to transfer claims related to fellow bankrupt entities like FTX, Celsius, and Voyager in exchange for credit via a token known as USDG.
GTX claims to utilize "battle-tested technology" and pledges to "lead the global progression towards greater financial transparency, liquidity, and certainty." It also said that it will fill the “power vacuum” left by FTX.
While the exchange is seeking to raise US$25 million "ASAP by end of February” confidence in GTX is understandably non-existent. Prominent market maker Wintermute has distanced itself from the exchange, with the company's founder and CEO Evgeny Gaevoy even going as far as saying that anyone who invests in the exchange might find it difficult to work with the firm in the future– "on the relationship building side."
3AC was one of crypto’s biggest hedge funds, with stakes in some of the industry’s key players including Terra (LUNA), BlockFi, and Deribit.
The firm filed for Chapter 15 bankruptcy in July, after it defaulted on a number of mega money loans, including US$2.4 billion from crypto lender Genesis Global Capital and US$665 million from Voyager Digital. On the other hand, CoinFlex, a crypto exchange, is in the process of restructuring after it suspended withdrawals in June citing "extreme market conditions."
The whereabouts of both Su and Davies also remain a mystery. More like opacity, illiquidity, and uncertainty. We think the only venture these fugitives should make is into prison.