Key Points:
- Mark Lamb and Sudgu Arumugam, co-founders of the problematic exchange CoinFLEX, are also founding team members.
- Users can trade claims for bankrupt cryptocurrency firms on the GTX market. These companies include BlockFi, Celsius, FTX, and Mt. Gox, to mention a few.
- The information was validated by WuBlockchain, which received it from the founder of Three Arrows, Su Zhu, who allegedly stated, "no comment, just busy building it."
Su Zhu and Kyle Davies, co-founders of Three Arrows Capital (3AC), are now making presentations (1) to potential investors to garner $25 million in initial capital for a brand-new crypto currency exchange known as GTX.
As stated in the pitch proposal, GTX will make it possible for users of cryptocurrencies to participate in a $20 billion cryptocurrency claim market that includes struggling organizations like as BlockFi, Celsius, FTX, and Mt.Gox, amongst others.
This indicates that GTX intends to enable trading for cryptocurrency bankruptcy claims. Additionally, the platform wants to access the stock securities lending industry, which is now valued at 2 trillion dollars.
The members of WuBlockchain's team confirmed the story with Su Zhu, the Co-Founder of the now-defunct cryptocurrency hedge fund 3AC. Su Zhu responded, "yes, no comment, just busy building it." Mark Lamb and Sudhu Arumugam, who were both involved in the founding of CoinFLEX, are also team members.
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 seed fund of $25m 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
“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 seed fund of $25m to trade claims from creditors. Su Zhu acknowledged the news to WuBlockchain: “yes, no comment, just busy building it. (2)”
Notably, CoinFLEX collapsed in 2022 due to the contagion caused by Terra's meltdown. In July, the site also implemented withdrawal restrictions and laid off a sizeable portion of its staff.
Leslie Lamb, formerly the Head of Institutional Sales for Amber Group, will take on the role of Chief Marketing Officer for GTX. In contrast, Kent Dog, who most recently worked for Alibaba, will take on the role of Chief Technology Officer for the new business.
3AC Founders Are Once Again Competing
The announcement of GTX's presentation to potential investors comes many months after the collapse of the crypto currency hedge fund Three Arrows Capital in the middle of 2022. In the wake of the incident, co-founders Su Zhu and Kyle Davies could not be seen, and there were rumors that the two had traveled to Dubai.
Both Zhu and Davies made the allegation that Alameda Research was after their long stakes in the company. The two individuals also said that Sam Bankman-businesses Fried's were responsible for the failure of 3AC, even though the disgraced founder of FTX refuted the charges.
Investigations into 3AC and its founders were launched by several regulatory agencies, such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), on suspicions of engaging in unethical business practices and defrauding investors.
Because the court and the liquidators do not know where Zhu and Davies are now located, they were both served (3) with subpoenas via the social network Twitter on January 5, 2023.
