Su Zhu and Kyle Davies, who were the founders of the defunct cryptocurrency hedge fund Three Arrows Capital, are attempting to attract capital for a brand-new cryptocurrency exchange that will be known as GTX. They are embarking on this new endeavor in collaboration with Mark Lamb and Sudhu Arumugam, who are the co-founders of Coinflex.
According to the pitch deck, the founders are seeking $25 million in seed funding.
When asked by crypto media outlet Wu Blockchain, Su Zhu confirmed that the news is true by stating, “yes, no comment, just busy building it.”
The founding team of GTX believes that the $20 billion crypto claims market should have a public trading platform. They aim to give claimants the ability to convert their claims into cryptocurrency and use them as collateral for trading.
According to the decks, GTX plans to use Coinflex’s technology to build the exchange and a legal team will be responsible for managing the process of accepting claims for bankruptcies in the cryptocurrency industry, including those of Celsius and Voyager.
Two months after the collapse of exchange giant FTX, a new exchange, GTX, is taking advantage of the situation by offering depositors the ability to transfer their claims from FTX to GTX and receive immediate credit in a token called USDG.
The exchange’s name is even a play on “FTX,” with one of the GTX pitch decks starting with the line “because G comes after F.”
The collapse of 3AC in July 2022 had a huge impact on the market for cryptocurrencies. A large number of well-known creditors were impacted by this issue, including Voyager Digital, Blockchain.com, and Deribit.
After the filing of the bankruptcy petition by their firm, the founders of 3AC were nowhere to be located. Nevertheless, in November, Su Zhu started to be active on Twitter and accused DCG and FTX of being the ones responsible for the failure of 3AC.
The community as a whole is in disbelief since the founders have decided to raise $25 million instead of facing the legal repercussions of their actions. The community has come to feel that “Grand Theft Exchange” describes GTX because of the history of its founders.
The cryptocurrency exchange known as Coinflex put a temporary halt on withdrawals in the month of June, but they were partly reinstated the following month. In addition, the corporation sought to recoup a shortfall of 84 million dollars that was shown on its balance sheet by initiating legal action against a customer in a court located in Hong Kong. At the moment, Coinflex is in the process of reorganizing itself.
Compiled by Coinbold