Su Zhu and Kyle Davies Raising $25M for a Crypto Exchange: Report

The two people behind the now-bankrupt crypto hedge fund Three Arrows Capital are reportedly planning to launch a new exchange and want to raise $25 million from investors.

The name of the new project will be GTX and will have a somewhat controversial relation to FTX.

• Citing two pitch desks, The Block reported that GTX’s name stems from the idea that “G comes after F,” in a clear affiliation with the failed crypto exchange. Recall that Su Zhu had multiple comments on FTX’s debacle and SBF’s actions at the time.
• The $25 million Zhu and Davies are looking to raise now should help them launch the new exchange that will focus on trading in crypto bankruptcy claims.
• The report also noted that the FTX creditors will transfer their claims on the former SBF-led exchange to GTX upon its launch.
• 3AC, once one of the largest crypto hedge funds, was among the first domino pieces to fall after the Terra ecosystem collapse last summer. Both founders have since been rather quiet on social media while also failing to cooperate with law enforcement agencies, according to some reports.
• Zhu and Davies, however, refuted these rumors but were recently subpoenaed in the bankruptcy case.
• They began to address the community more frequently in the past several weeks, often times blasting other struggling crypto companies, such as Digital Currency Group.