Su Zhu and Kyle Davies, owners of the defunct crypto hedge fund Three Arrows Capital (3AC), are apparently attempting to gather funds for a new cryptocurrency exchange in collaboration with Coinflex cofounders Mark Lamb and Sudhu Arumugam. They hope to fund $25 million, according to a pitch deck.
According to the presentation, the planned new exchange would be called GTX. They intend to exclusively target claims against insolvent companies. “FTX customers are selling claims at 10% face value for quick money or waiting for the bankruptcy to execute payouts,” according to the presentation. It promised to break into the insurance claims market:
“Our legal team will streamline and automate claims onboarding to GTX and make it the dominant marketplace for FTX and other bankrupt companies’ claims.”
In contrast to other claims market operators, GTX would enable users to use claims as trading collateral. Furthermore, they said that the new exchange might “fill the power vacuum created by FTX” and grow into regulated markets like the stock market.
In June, Coinflex suspended withdrawals but resumed partial withdrawals the following month. That month, it also sued an individual user in Hong Kong court to close an $84 million shortfall in its financial sheet. It is currently being restructured.
Su and Davies went missing after 3AC was forced to liquidate on June 27. According to reports, they are currently in Indonesia and the United Arab Emirates. Su returned to Twitter in November and accused FTX and Digital Currency Group of colluding to bring 3AC down. Su and Davies were served subpoenas through Twitter on January 5 after refusing to accept service through their Singapore-based attorneys.