Bankrupt Three Arrows Capital founders plan to raise $25 million for new crypto exchange after FTX collapse
|- Three Arrows Capital founders Kyle Davies and Su Zhu intend to pitch a new exchange as a means of escaping FTX's losses.
- The project is being developed in partnership with the founders of another struggling crypto company CoinFLEX.
- The founders of the bankrupt crypto company were recently subpoenaed over Twitter to report 3AC’s financials.
Three Arrows Capital (3AC) emerged as one of the most devastating crashes in the crypto market as it triggered a series of downfalls that the market is yet to recover. Even before the dust on 3AC could settle, its founders have come up with a new business proposal seeking $25 million.
Three Arrows Capital to be repeated?
Three Arrows Capital went under and could not be revived in the last six months. Following this, the crypto market faced another drawback in the form of FTX collapse. The now-bankrupt cryptocurrency exchange initiated another market crash, which the 3AC founders intend to leverage.
According to pitch decks obtained by The Block, Three Arrows Capital founders Kyle Davies and Su Zhu intend on raising $25 million to launch a new crypto exchange named GTX.
GTX is being sold as a means of pulling people out of the FTX collapse by allowing them to transfer their FTX assets and claims to GTX.
This new crypto exchange, as per the pitch decks, will be developed in partnership with the founders of CoinFLEX, another exchange platform undergoing restructuring at the moment.
FTX, on the other hand, is also moving to sell four of its business, including Japanese and European arms. Bidding for the same is set to start in the next few days.
Three Arrows Capital founders remerge
Earlier this month, the liquidator working on Three Arrows Capital's bankruptcy, Teneo, had to take an unusual course of action in the search for documents related to the company's digital assets, accounts and other papers.
Following no response to multiple previous attempts, Teneo posted the subpoenas on Davies' social media platform.
Since their Twitter accounts were frequently used, liquidators targeted the same but to no avail. Their decision to do the same came mere weeks after Three Arrows Capital's $35.6 million was seized by the liquidators, which also included forced redemptions of $2.75 million in investments.
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