The company hopes to debut as soon as possible, and it believes the claims industry is worth about $20 billion, according to the project’s pitch deck.
Su Zhu and Kyle Davies, the co-founders of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC), along with Mark Lamb and Sudhu Arumugam, the co-founders of Coinflex, are apparently seeking funding for a new cryptocurrency exchange. They want to fund $25 million, according to a pitch deck.
The proposed new exchange will be dubbed GTX according to the presentation. They suggest concentrating their efforts on claims against insolvent businesses.
“FTX users are selling claims at ~10% face value for immediate liquidity or waiting 10+ years for the bankruptcy to process disbursements,” the presentation said, pledging to take on the claims industry:
“Our legal team will streamline and automate claims onboarding to GTX and make it the dominant marketplace for FTX and other bankrupt companies’ claims.”
GTX would permit users to utilize claims as trading collateral, in contrast to rival claims market providers. The planned exchange could also “fill the power vacuum left by FTX,” they added, and extend into regulated markets like the stock market.
In June, Coinflex stopped processing withdrawals, although the process was partially restored in July. In an effort to close a $84 million shortfall in its balance sheet, it also filed a lawsuit against a single user in a Hong Kong court the same month. It is now undergoing restructuring.
Su and Davies vanished the same day that 3AC was thrown into insolvency. The United Arab Emirates and Indonesia are said to be where they are currently. Su rejoined Twitter in November and has since accused FTX and Digital Currency Group of working together to bring about 3AC’s demise. Su and Davies received subpoenas via Twitter on January 5 after declining service via their legal counsel in Singapore, where the business is headquartered.