• The founders of the now-defunct crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, are reportedly seeking to raise $25 million from investors to start a new crypto exchange called GTX.
• This solicitation for new capital comes after 3AC co-founders were subpoenaed over the social media platform Twitter.
• Two Coinflex executives, Mark Lamb and Sudhu Arumugam, are also mentioned as part of the new team for the crypto exchange.
The crypto industry is abuzz with reports that the founders of the now-defunct crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, are seeking to raise $25 million from investors to start a new crypto exchange called GTX. This comes after 3AC was forced to file for Chapter 15 bankruptcy protection during the first week of July 2022 due to financial difficulties, and Zhu and Davies were subsequently served subpoenas from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The news of the new exchange has been met with skepticism, as 3AC’s liquidators have had difficulty communicating with the two co-founders. Reports indicate that the company is being investigated for potential legal violations. To further compound the situation, two Coinflex executives, Mark Lamb and Sudhu Arumugam, are also mentioned as part of the new team for the crypto exchange. Coinflex, like Three Arrows Capital, also suffered from financial issues and filed for restructuring services in Seychelles last August.
An alleged pitch deck and website screenshots have been shared on social media, claiming that the two 3AC co-founders are attempting to raise $25 million to start the new crypto exchange. The screenshots show that the exchange will offer algorithmic trading, margin trading, and spot trading as well as a variety of other services.
The crypto industry continues to watch the situation closely as more details are revealed. It remains to be seen whether Zhu and Davies will be successful in their endeavor to raise the necessary funds and launch the new exchange. Nevertheless, the news has sparked debate about the potential risks and rewards of such a venture.
