The founders of the bankrupt hedge fund Three Arrows Capital (3AC) and the crypto derivatives exchange CoinFLEX have just collaborated to launch a new crypto exchange, GTX. The team is now seeking a $25 million seed fund to run operations.
The top executives for the project are Su Zhu, Kyle Davis, Mark Lamb, and Sudhu Arumugam.
What is GTX?
GTX is a crypto exchange designed to enable the trading of claims from creditors. The platform seeks to help creditors of bankrupt crypto exchanges lay claims to their holdings and use these claims for trading operations.
According to a pitch deck, these defunct crypto platforms include FTX, Celsius, BlockFi, Mt. Gox, etc.
“Our legal team will streamline and automate claims onboarding to GTX and make it the dominant marketplace for FTX and other bankrupt companies’ claims,” the pitch deck stated.
GTX will allow users to use the claims as collateral and offer a trading fee between 0.25% to 0.50%. The platform claims that it will stand out from its competitors – XClaim and Claims Market.
The rise of GTX is likely inspired by the recent debacle of FTX, which affected more than one million creditors. In the opening of a pitch deck, the name – GTX – springs from the idea that “G comes after F.”
Once the funding round is completed, the project seeks to go live by the end of February 2023.
The Financial State of 3AC & CoinFLEX
The insolvency of 3AC dates back to June 2022, when the Terra ecosystem saw a catastrophic collapse. Following the revelation of its shocking financial condition, 3AC filed for Chapter 15 bankruptcy protection.
In a recent report, 3AC co-founder Zhu blamed FTX and Digital Currency Group (DCG) for the demise of his hedge fund.
CoinFLEX, on its part, has a record of liquidity issues. In June 2022, the exchange suspended the withdrawals of users’ funds. A few days later, the platform declared its plan to sell $47 million worth of a token called rvUSD, so it could settle its financial crunches.
