3AC Founders in Partnership With CoinFLEX to Raise $25M for GTX

Kyle Davies and Zhu Su, co-founders of Three Arrows Capital (3AC) who were recently subpoenaed on Twitter have been trying to raise funds for a new cryptocurrency venture in collaboration with Mark Lamb and Sudhu Arumugam, the co-founders of Seychelles-based cryptocurrency exchange CoinFLEX. 

According to a blog post by CoinFLEX, “Building a marketplace for trading claims (in addition to crypto and potentially other assets) is an evolution of Coinflex’s commitment to building open and transparent financial markets.” 

Endeavoring to explain the purpose of the proposed exchange, the company stated that 

“we will be able to provide an avenue to liquidity that current crypto creditors lack from many different platforms and also bring in new volumes to the exchange through crypto trading.” Precisely, depositors will be allowed to transfer their trading claims from crypto firms like FTX in exchange for a USDG token.

Initially, they planned on naming the proposed trading claim exchange GTX but are now reconsidering after the scheme to raise $25 million was ridiculed on Twitter. The fund was meant to be invested in boosting operational growth with the best interest of CoinFLEX creditors at heart. 

Crypto Twitter Mock GTX Exchange

Nic Carter, Castle Island Ventures’ founding partner likened GTX to  arsonists returning to the scene of the crime, hawking buckets of water to their victims.” Similarly, the Chief Executive Officer (CEO) and founder of Wintermute Evgeny Gaevoy issued a warning stating that any entity which plans to work with his firm in the future, should stir clear of the proposed trading claim venture.

Based on the pitch deck, “Our legal team will streamline and automate claims onboarding to GTX and make it the dominant marketplace for FTX and other bankrupt companies’ claims,” CoinFLEX clarified. 

In the end, the crypto exchange hopes that this new trading firm will occupy the vacuum left by FTX implosion and bankruptcy filing and at the same time, expand into other regulated markets including stocks and equity.

Many community members are suspicious and vigilant of the operations of the proposed GTX trading firm because its founders have questionable histories. While 3AC is faced with bankruptcy, CoinFLEX on the other hand is undergoing a restructuring process.