3AC Founders Zhu and Davies To Launch New Cryptocurrency Exchange With $25M Funding

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Su Zhu and Kyle Davies, the creators of the crashed 3AC hedge fund, intend to launch a new crypto exchange to participate in the rising cryptocurrency market. This has raised concerns among the crypto community as they both are the subject of many criminal and regulatory investigations in connection with 3AC, which went bankrupt last June.

Updates on Three Arrows Capital Partnership

Kyle Davies and Su Zhu, the developers of 3AC, have partnered with Sudhu Arumugam and Mark Lamb from CoinFlex to introduce their newest project, GTX, which is set to launch in the coming months. Meanwhile, they intend to raise $25 million to launch GTX, a new cryptocurrency exchange, that would allow users to instantly transfer their claims connected to FTX into the USDG token.

According to the documents, GTX will use Coinflex’s technology to create the exchange, and a legal team would be in charge of managing the processing of claims for all recently bankrupt cryptocurrencies, including Celsius and Voyager.

It should also be noted that the new project efforts were announced two months after the exchange titan FTX collapsed, leaving more than a million creditors with unpaid debt.

The new exchange reportedly takes advantage of the situation by enabling depositors to convert their FTX claims to GTX and get immediate credit in a token called USDG, according to the presentation slide.

Along with the four founders, the GTX includes Ewelina Mielecka as a chief digital officer, Leslie Lamb as CMO, and CTO Kent Deng. The GTX team consists of more than 60 developers.

3AC: From Before To After – A Look At The History

It is worth recalling that Zhu and Davies’ cryptocurrency hedge fund, 3AC, collapsed in June 2022 after the Terra collapse, resulting in a significant negative impact across the sector and causing other crypto lenders to go bankrupt.

3AC, the largest cryptocurrency hedge fund, was one of the first to collapse. Since then, both founders have reportedly kept to themselves on social media and refused to help law enforcement. However, Zhu and Davies denied these claims despite recently receiving a subpoena in the bankruptcy case.

In the past few weeks, they have been communicating more often with the public, mainly criticizing other failed crypto enterprises, such as Digital Currency Group.



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