3AC Founders Want to Launch a New Crypto Exchange

by Jodi King

Key Takeaways

  • 3AC co-founders Su Zhu and Kyle Davies want to launch their own crypto exchange.
  • They are seeking $25 million from investors.
  • GTX, as the project is called, aims to be a public marketplace for crypto claims.

Su Zhu and Kyle Davies want to tap into the ballooning crypto claims market by launching their own exchange. The crypto community is not impressed.


Three Arrows Capital is planning a comeback of sorts.

3AC co-founders Su Zhu and Kyle Davies are seeking to raise $25 million to start a new crypto exchange by the name of GTX. They are joined in the venture by CoinFLEX co-founders Mark Lamb and Sudhu Arumugam.

According to the pitch desk, GTX will enable the trading of crypto claims—which the document describes as a $20 billion market—in matters related to FTX, Celsius, BlockFi, Mt. Gox, and other bankrupt crypto companies. The GTX team then plans to expand product offering to enable the trading of cryptocurrencies, stocks, and forex. 

Zhu and Davies’ crypto hedge fund, 3AC, blew up in June 2022 in the wake of the Terra collapse, triggering massive contagion within the crypto industry and forcing several crypto lenders into bankruptcy. Unapologetic, the two co-founders have refused to cooperate with liquidators and creditors, to the extent that the Supreme Court of Singapore and the U.S. Department of Justice recently issued subpoenas to them through Twitter.

CoinFLEX, meanwhile, was the crypto exchange that issued Bitcoin evangelist Roger Ver a $47 million loan, and then tried to monetize its bad debt by issuing a token called rvUSD. It subsequently decided to slash some of its workforce in order to finance the company’s restructuring.

Unsurprisingly, the GTX pitch desk was poorly received in the crypto community. “If you are investing into CoinFLEX/3AC[’s] ‘exchange’ you might find it a bit more difficult to work with Wintermute in future (on the relationship building side),” stated Wintermute CEO Evgeny Gaevoy. “Similarly, we are not going to be participating in venture rounds where these guys are about to enter the cap table, so founders beware.”

Castle Island co-founder Nic Carter expressed a similar feeling. “You can make ‘contrarian’ ‘comeback story’ bets on anyone you like, even bottom of the barrel disgraced fraudsters, but there are costs associated with that.”

Disclaimer: At the time of writing, the author of this piece owned BTC, ETH, and several other crypto assets.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Su Zhu Says 3AC Is “Committed to Working This Out” as Wipe...

Su Zhu and Kyle Davies’ Three Arrows Capital is one of crypto’s most respected hedge funds. Su Zhu Speaks Out Three Arrows Capital co-founder Su Zhu has broken his silence...

Su Zhu Says 3AC Is “Committed to Working This Out” as Wipe...

Genesis Trading Confirms “Large Counterparty” Liquidation Amid 3AC...

News Jun. 17, 2022

The update comes as the celebrated crypto hedge fund Three Arrows Capital faces its biggest liquidity crisis to date.  Genesis Trading Says It Liquidated Counterparty Genesis Trading has confirmed that...

Genesis Trading Confirms “Large Counterparty” Liquidation Amid 3AC...

2022 in Review: the Top 10 Crypto Villains of the Year

SBF, Kwon, 3AC, and more: 2022 was a packed year for crypto villains.  The Crypto Villains of the Year  The Crypto Briefing editorial team puts a lot of thought into...

2022 in Review: the Top 10 Crypto Villains of the Year