3AC Founders Seek $25 Million for New Crypto Exchange

Su Zhu and Kyle Davies, founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC), are seeking a $25 million investment to set up a new crypto marketplace called GTX. In addition to the two founders, the team for the new project includes Mark Lamb and Sudhu Arumugam, co-founders of cryptocurrency exchange CoinFlex.

The new project is said to aim to dominate the crypto claims market within two to three months of its launch. The idea is to allow customers of bankrupt FTX, as well as other insolvent corporates' customers, to access funds and invest again, Zhu said. The new platform is designed to "verify and tokenise" customers' claims, allowing them to use them as collateral, he added.

The two founders said, “Creditors may continue to hold their claims to maturity or elect to sell them to crypto, while using these claims as margin capital.” He estimates the size of the claims market at $20 billion.

Three Arrows Capital is based in Singapore, and in its heyday, the fund had more than $4 billion in assets under management. But in June 2022, a British Virgin Islands court ordered its liquidation. The collapse of 3AC is said to have been caused by several reasons, including the collapse of Terra-Luna, for which the firm had placed heavy bets. After the collapse of Three Arrows Capital, the founders proposed the new project that sparked much controversy.

(Source: The Business Times)