Three Arrows Capital Founder Wants to Make a New Crypto Exchange Named GTX, Will It Go Bankrupt Again No?

Three Arrows Capital founder Su Zhu plunged into crypto again. (Photo; Doc. Coincolik)

JAKARTA – The two founders of bankrupt Three Arrows Capital (3AC), Su Zhu and Kyle Davies, are planning to return to the crypto world with plans to create a new crypto exchange, named GTX. For this reason, the two intend to raise US$25 million in funding to start their business.

They will be joined by Mark Lamb and Sudhu Arumugam from CoinFLEX on this project. According to the plans, GTX will allow trading of crypto assets described as a 20 billion US dollar market related to crypto companies like FTX, Celsius, BlockFi, Mt. Gox, and other crypto companies that went bankrupt.

The GTX team then plans to develop its product to enable trading of cryptocurrencies, stocks and forex. Zhu and Davies' crypto hedge fund 3AC exploded in June 2022 due to the Terra collapse which had a huge impact on the crypto industry and forced several Blockfi givers into bankruptcy.

However, the two founders remained innocent and refused to cooperate with liquidators and creditors. This led to the Singapore Supreme Court and the US Department of Justice recently issuing subpoenas via Twitter.

Meanwhile, CoinFLEX, formerly known as a crypto exchange that provided a $47 million loan to Roger Ver who invited him to promote Bitcoin, then tried to take advantage of his bad debts by issuing a token called rvUSD.

Then CoinFLEX decided to reduce most of its employees to finance a company restructuring. Unsurprisingly, GTX's plans were badly received by the crypto community.

Several leaders in the cryptocurrency industry such as Wintermute CEO Evgeny Gaevoy and Castle Island co-founder Nic Carter expressed concern and reluctance to participate in the project. However, despite this, the project will continue and the founders will continue to try to attract funds from investors.