Finance & Economics

Collapsed Crypto Hedge Fund Founders Want $25 Million for New Project

Founders of the now-bankrupt Three Arrows Capital (3AC) are pitching a collaboration to cryptocurrency exchange CoinFLEX.

The pitch deck about a new project between 3AC founders and CoinFLEX has been leaked.
Source: Unsplash

News began circulating late Monday, January 16, that Kyle Davies and Su Zhu have tapped crypto investment firm CoinFLEX to build a new digital currency exchange called “GTX”.

In a leaked pitch deck, 3AC’s founders together with Mark Lamb and Sudhu Armugan of CoinFLEX were discussing the raising of funds for their new project, precisely $25 million.

Based in Seychelles, CoinFLEX is a multifunctional trading platform, which combines the mechanics of a universal crypto wallet and an adaptive investment portfolio with advanced options for passive earnings. Last August, the crypto derivatives exchange filed for restructuring as a quick resolution to its $84 million debt. Back then, this restructuring included issuing rvUSD tokens, equity, and a locked version of the platform’s native FLEX coin.

The company was also looking for fresh investors, said CoinFLEX CEO Mark Lamb:

“We look forward to welcoming a new group of shareholders to CoinFlEX and are glad to be in a jurisdiction where we can quickly resolve this situation and return maximum value to depositors.”

CoinFLEX was one of the many crypto firms to halt exchanges due to “extreme market conditions” in 2022. Its new partner, 3AC, filed for Chapter 15 bankruptcy in September of the same year, citing the same reasons.

With it, 3AC took cryptocurrency broker and lender Voyager Digital, which filed for Chapter 11 bankruptcy shortly after. Voyager had extended a $670 million loan to 3AC in early 2022.

Now, GTX, which CoinFLEX rushed to clarify “only serves as a placeholder name for now”, is looking to get into the claims market, estimated to be worth around $20 billion.

Alice Pylypenko

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Alice is an editor, journalist, and essayist. Educated in psychology and dedicated to decentralization efforts, Alice continues to disclose the capabilities of Bitcoin to cultivate liberty, equality, and solidarity while shedding light on misinformation, power overreach, financial scandal, and the reasons behind them.