Key Takeaways
- GTX will trade crypto claims owed to creditors hit by the fall of numerous crypto-related ventures
- The founders are looking to raise $25 million for the new exchange
- The exchange will have a streamlined system for onboarding FTX and other bankruptcy claims.
Founders of Coinflex- Mark Lamb and Sudhu Arumugam, are reportedly joining hands with bankrupt crypto hedge fund Three Arrows Capital (3AC) founders Su Zhu and Kyle Davies to raise funds to build a new crypto exchange.
The founders are looking to raise $25 million for a new crypto exchange called GTX. As per the pitch deck obtained by the media houses, the new platform will focus on trading crypto claims owed to creditors hit by the fall of numerous crypto-related ventures, a reported $20 billion market.
GTX plans to target creditors of several bankrupt crypto companies as the main target base. The pitch claims that by putting claimants’ debt capital to work, the proposed exchange could “dominate” the crypto claims market within three months and soon grow into a leading cryptocurrency exchange over time, eventually incorporating crypto, stocks, lending, and the foreign exchange market into its platform.
“Our legal team will streamline and automate claims onboarding to GTX and make it the dominant marketplace for FTX and other bankrupt companies’ claims,” the pitch deck reads. They claim the exchange could “fill the power vacuum left by FTX” and expand into regulated markets such as the stock market.
The founders plan to bring GTX to market by the end of February. The exchange is reported to have features including a streamlined system for onboarding FTX and other bankruptcy claims.
Following the latest development becoming a talking point, several Coinflex users have expressed resentment at CoinFlex partnering with a collapsed hedge fund like 3AC. Some users have also argued that CoinFlex won’t benefit from the new venture since it is being launched by the company’s management outside of CoinFlex.The founders have, however, dismissed this argument as a false narrative.CoinFlex is now working towards restructuring following the platform facing liquidity issues last year.
3AC filed for a Chapter 15 bankruptcy on July 1 in a New York court. The leaked court filing had earlier revealed that 3AC owes over $3 Billion to creditors. The founders Zhu and Davies’ are now reportedly living in Indonesia after being on the run for a while.
