The fugitive co-founder of the defunct Three Arrows Capital (3AC) crypto hedge fund, Su Zhu, joined forces with CoinFlex in plans to run a new cryptocurrency exchange, GTX. Su Zhu will accompany two CoinFlex co-founders – Mark Lamb and Sudhu Arumugam.
Su Zhu, half the 3AC founding duo, is wanted by police and fled 3AC’s Singapore Office days after declaring bankruptcy. While court-appointed liquidators Teneo are on a global chase for the fugitive, the embattled crypto entrepreneur is jumping into a new venture with his new partners. Furthermore, the brand-new crypto exchange tends to take 0.25%-0.50% commission fees. It already has a potential launch date of the end of February 2023.
Calling GTX - (a partnership between the now-bankrupt 3AC and currently restructuring CoinFLEX) - “battle tested” is a pretty bold marketing strategy. pic.twitter.com/tndWGsQumx
— Journalistbrah (@thecryptojourno) January 17, 2023
GTX to Trade Debt Claims on FTX?
According to the freshly-forged master plan, the GTX crypto exchange would offer stocks, at least a hundred cryptocurrencies, and debt claims. Hence, the upcoming GTX exchange adopts a rather cynical approach to “fill the void created by FTX” while trading FTX debt claims on the new platform. GTX plans to unlock about $20 billion of crypto debt claims, which can take up a significant portion of the platform’s assets.
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Ultimately, the bold move from the downtrodden entrepreneurs left many crypto enthusiasts on Twitter wondering if GTX will also offer bids on Three Arrows Capital claims, some of which Su Zhu and Kyle Davies authored themselves. However, according to Su Zhu’s close partners, swapping 3AC’s enormous debt claims into equity is a likely option on the new exchange.
Take note @SBF_FTX , if these muppets can raise $25mio by changing FTX to GTX, imagine what you could raise changing FTX to ZTX.
— Arthur Hayes (@CryptoHayes) January 17, 2023
You just might be able to pay all your customers back. pic.twitter.com/7E3P29v1AT
Crypto Twitter Drags GTX Through The Mud
In response to the groundbreaking news, Evgeny ‘Wishful Cynic’ Gaevoy, the CEO of Wintermute, warned the crypto community. He asserted that the global crypto market maker wouldn’t work with anyone investing in GTX. Wintermute plays a key role in the crypto markets, with a daily trading volume of over $5bn.
As Wintermute’s CEO has a clear stance on the shady project, many crypto investors are staying away from GTX to avoid getting banned from the former’s ventures. However, the Crypto Twitter roast of the 3AC Reunion didn’t stop there.
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Nic Carter of Castle Island Ventures lambasted the far-fetched idea even harder by sarcastically remarking:
"Disgraced fraudsters teaming up with other disgraced fraudsters to trade claims from a collapsed fraudulent exchange. Sounds backable..".
Many renowned crypto entrepreneurs on Twitter are questioning the project’s integrity.
Similarly, we are not going to be participating in venture rounds where these guys are about to enter the cap table, so founders beware🤷
— wishful cynic (@EvgenyGaevoy) January 16, 2023
On the Flipside
- The funding round documentation describes GTX as a ‘placeholder name’ that can be ‘changed at any time.’
Why You Should Care
The makers behind GTX are having a dig at FTX and its corrupt founder Sam Bankman-Fried. They’ve deliberately chosen a name that closely resembles the fallen exchange. As the new crypto platform replaced the unlucky F with the following G, the GTX crypto exchange is a part of CoinFlex’s restructuring plan, which aims to “build transparent and open financial markets.”
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