Three Arrows Capital Co-Founders Pitch To Raise $25 Million For New 'GTX' Exchange

Su Zhu and Kyle Davies, the founders of collapsed crypto hedge fund Three Arrows Capital (3AC), are hoping to raise $25 million to start a new crypto exchange called GTX, according to two separate pitch decks obtained by The Block. Three Arrows Capital was one of the largest hedge funds in crypto until last year's collapse of the Terra ecosystem left it facing significant losses. The financial advisory firm Teneo has been handling the liquidation of 3AC's assets and the hedge fund has filed for Chapter 15 bankruptcy in New York. From the report: News of the fundraise comes two months after exchange giant FTX imploded, leaving more than a million creditors out of pocket. The new exchange takes advantage of the situation offering depositors the ability to transfer their FTX claims to GTX and receive immediate credit in a token called USDG, the pitch deck said. The exchange's name is even a spin on "FTX," with one of the GTX pitch decks opening with the line "because G comes after F." The Three Arrows pair are partnering with Mark Lamb and Sudhu Arumugam, who founded CoinFlex, a crypto exchange which is in the process of restructuring. The exchange's executive team is also made up of several CoinFlex executives including the firm's general counsel and chief technology officer, per one of the decks. GTX will leverage Coinflex's technology to build the exchange and a legal team will be responsible for overseeing the onboarding of claims for all the recent crypto bankruptcies such as Celsius and Voyager, according to the decks. The exchange is looking to launch as soon as possible -- potentially as soon as February -- and is estimating that the claims market is worth around $20 billion, according to the decks.

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