The co-founders of the failed Three Arrows Capital (3AC) cryptocurrency hedge fund want $25 million to start up a proposed exchange, as reported earlier by The Block and Bloomberg. It will be called “GTX” — according to its leaked pitch deck — “because G comes after F,” and FTX, the once-huge exchange, is now bankrupt.
Part of GTX’s pitch is letting people buy and sell bankruptcy claims from failed crypto firms, as well as use those claims as collateral. The group’s looking to raise funds “ASAP” for a potential launch by the end of February, according to the pitch deck.
The co-founders estimate that there’s about $20 billion in the crypto claims market, noting that GTX “unlocks” funds from the embattled FTX and Celsius trading firms “for immediate trading.” Zhu tells The Wall Street Journal that 3AC creditors will “have the option to convert their claims into equity in the new claim-trading company.”