Three Arrows Capital founders plan to create a new crypto exchange

Su Zhu and Kyle Davis, the founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC), hope to raise $ 25 million to launch a new cryptocurrency exchange. This became known to journalists of The Block.

According to the publication, the platform will be called GTX. Zhu and Davis are allegedly working with the owners of the cryptocurrency profitability firm CoinFLEX, Mark Lamb and Sudhu Arumugam. According to journalist Colin Wu, it is a platform «for trading creditor claims.»

The founders of 3AC, Zhu Su and Kyle Davis, and the two founders of CoinFlex have launched a new project, GTX, which is raising a $ 25m seed fund to trade claims from creditors. Su Zhu acknowledged the news to WuBlockchain: «yes, no comment, just busy building it».

— Wu Blockchain (@WuBlockchain) January 16, 2023

Back in July 2022, Three Arrows Capital filed for bankruptcy in a New York court. According to Nansen, at that time, the organization managed assets worth about $ 10 billion. Information about 3AC's possible insolvency emerged after the cryptocurrency market collapse and Terra’s collapse in May. At the end of June, a court in the Virgin Islands (UK) decided to liquidate the hedge fund. Zhu and Davis later attributed the collapse of 3AC to their own overconfidence.

In December, Three Arrows Capital’s liquidators recovered $ 35.6 million from Singapore bank accounts belonging to the hedge fund and also filed a petition to sell a luxury yacht worth $ 30 million.

Earlier, the co-founder of the cryptocurrency platform 3AC, Zhu Su, campaigned for users to invest in the Terra stablecoin. Zhu published a post on his Twitter account urging users to take out loans using BTC as collateral and invest in the «famous UST stablecoin» to get 20% profit. Zhu Su deleted his tweet 7 days after the announcement of the Terra stablecoin collapse.