In June 2022, crypto hedge fund Three Arrows Capital (3AC) went bust, sending the crypto markets into despair. Following the implosion, the fund’s co-founders, Su Zhu and Kyle Davies, published some cryptic tweets and went into hiding. For months, we had no idea where they were or what they were doing. Were they dead? In jail? On a beach? Nobody knew.
But then FTX collapsed, and Su and Kyle realized that this was their opportunity to return. Because what better way to make people forget about your failure than someone else’s bigger failure? They were back, blaming SBF for 3AC’s collapse faster than you could say “fraud”.
But throwing shade on Twitter was not enough for the 3AC boys. They needed more, and they now have it in the form of their new crypto exchange.
Details on the new exchange are scarce, with everything we know coming from a leaked pitch deck:
- The name right now is “GTX”. Yep, one letter after “FTX”. Can’t make this stuff up
- The co-founders of crypto investment firm CoinFLEX, Mark Lamb and Sudhu Arumugam, are part of the founding team. This is the same CoinFLEX that had to halt withdrawals last year and restructure in a Seychelles court. A perfect match for the 3AC boys
- The exchange will focus on the “$20 billion crypto claims market”. Basically, GTX will make it so that people can trade and instantly access liquidity for their bankruptcy claims instead of waiting for the court case to play out. The irony of 3AC, a bankrupt hedge fund, spearheading this effort is not lost on us
- They want to “fill the power vacuum left by FTX”
- They eventually want to expand into other regulated markets
- They are looking to raise $25 million
Who better to trust with your money than two guys who lost $4B in half a year?
The idea behind GTX is actually pretty clever, and it’s worked with x-claim before.
But, we can’t in good conscience recommend users touching GTX. It wasn’t long ago that the 3AC team lost an unfathomable amount of money due to pure degeneracy. And now they want you to deposit money onto their crypto exchange?
Unless you have an irresistible urge to gamble with your money, steer clear of this one.