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Founders of 3AC Seek $25 Million for New Crypto Exchange

The founders of crypto hedge fund Three Arrows Capital (3AC) and CoinFlex are seeking to raise $25 million to launch a new crypto exchange focused on claims trading.

Shu Zu and Kyle Davies
Shu Zu and Kyle Davies

Su Zhu and Kyle Davies, the founders of 3AC, which collapsed last year, are pitching investors on their new exchange, GTX, which aims to take advantage of the recent implosion of exchange giant FTX. The new exchange will allow depositors to transfer their FTX claims to GTX and receive immediate credit in a token called USDG.

The Three Arrows pair are partnering with Mark Lamb and Sudhu Arumugam, who founded CoinFlex, a crypto exchange that is restructuring. The exchange's executive team comprises several CoinFlex executives, including the firm's general counsel and chief technology officer.

GTX will leverage CoinFlex's technology to build the exchange, and CoinFlex's legal team will oversee the onboarding of claims for recent crypto bankruptcies such as Celsius and Voyager. The exchange aims to launch as soon as possible, with an estimated market value of $20 billion.