The Block reported that Su Zhu and Kyle Davies, founders of the now-defunct Three Arrows Capital, are attempting to raise $25 million to launch a new cryptocurrency exchange called GTX. This exchange will offer holders of FTX claims the opportunity to transfer them to GTX and receive immediate credit in a token called USDG. 

The name of the exchange is a reference to FTX, since “G” comes after “F” in the alphabet. They are partnering with Mark Lamb and Sudhu Arumugam, the minds behind CoinFlex, which is also currently undergoing restructuring.

The executive team for GTX will include executives from CoinFlex such as the general counsel and chief technology officer.

GTX is looking to leverage the technology of CoinFlex to create the exchange, and a legal team will be responsible for handling the onboarding of claims related to various crypto bankruptcies such as Celsius and Voyager.

The Block further reported that Mark Lamb declined to comment on the fundraising efforts, while Kyle Davies did not immediately respond to a request for comment. They are aiming to launch the exchange as soon as February, with an estimated value of the claims market being around $20 billion.

This comes after Three Arrows Capital’s liquidation in December, when the court authorized issuance of subpoenas to the founding members to turn over any related documents.

Zhu and Davies both went quiet for some time after the hedge fund’s collapse but both since resurfaced on social media as of late. They are believed to be in Dubai and Bali, respectively.

3AC Founder Su Zhu Gives His Comment on The FTX Situation

In one of Bloomberg’s reports a few months ago covering a rare interview in Abu Dhabi, fallen Hedge Fund Three Arrows Capital’s Founder, Su Zhu, stated that “a string of high-profile crypto crises could set the industry back by almost a decade”, his comments come just a couple of months after his own hedge-fund imploded in what is considered as one of the biggest trading busts in the industry.