Runaway Founders of $ 10B Hedge Fund, 3AC to Launch New Exchange GTX

3AC founders who are currently on the run are seeking to raise a whopping $ 25 million to launch an exchange (GTX) as FTX’s replacement.
GTX is designed to help creditors of bankrupt exchanges like FTX, Celsius, BlockFi and Mt.Gox lay claims on their holdings and used the claims for trading.

The founders of the now-defunct crypto hedge fund Three Arrows Capital (3AC), Kyle Davies and Su Zhu, are seeking to raise $25 million to launch a new exchange called GTX. The exchange is expected to launch in a few months and will allow users to use claims as collateral for trading.

GTX is a joint venture between 3AC and Coinflex, a physically delivered crypto futures exchange. Coinflex suspended withdrawals and deposits in June 2022 amid turmoil in the crypto markets, but later resumed partial withdrawals.

The new exchange is being launched in response to the recent wave of bankruptcies in the crypto industry. GTX will allow users to trade claims against bankrupt companies, such as FTX.

FTX filed for bankruptcy in June 2022 after it was unable to meet its financial obligations. Users of FTX are now selling their claims at a fraction of their face value in order to get some liquidity. GTX will allow users to use these claims as collateral for trading, which could provide them with some much-needed relief.

The launch of GTX is a risky proposition for Davies and Zhu. The two men are still facing legal challenges related to the collapse of 3AC. However, they are hoping that GTX will be a success and that it will help them to rebuild their reputations.

It remains to be seen whether GTX will be successful. The crypto market is still in a state of flux, and it is unclear how investors will react to a new exchange from the founders of a failed hedge fund. However, Davies and Zhu are confident that GTX has the potential to be a major player in the crypto industry.

History of 3AC and the Runaway Founders

3AC was founded in 2012 by Davies and Zhu. The hedge fund quickly became one of the largest and most successful crypto funds in the world. However, 3AC’s luck ran out in 2022.

The fund made a series of bad bets on Luna Classic (LUNC) and stETH. These bets turned sour when the prices of LUNC and stETH crashed. 3AC was forced to liquidate its positions, which led to a wave of defaults.

The collapse of 3AC had a ripple effect throughout the crypto industry. Many other companies were forced to liquidate their positions, which led to a further decline in the price of cryptocurrencies.

Davies and Zhu have since disappeared from the public eye. They are believed to be in Dubai and Bali, respectively. The two men are facing legal challenges in the United States and Singapore.

It is unclear what the future holds for Davies and Zhu. However, the launch of GTX is a sign that they are not giving up on the crypto industry. GTX could be a success, but it could also be a major failure. Only time will tell.