On the 16th of January 2023, Colin Wu, a blockchain reporter on Twitter, posted that the founders of Failed 3AC are raising $25 million for their start-up.
The founders of 3AC, Zhu Su and Kyle Davis, and the two founders of CoinFlex have launched a new project, GTX, which is raising a seed fund of $25m to trade claims from creditors. Su Zhu acknowledged the news to WuBlockchain: “yes, no comment, just busy building it”.
— Wu Blockchain (@WuBlockchain) January 16, 2023
Zhu Su and Kyle Davis, who founded the bankrupt 3AC, teamed up with two founders of CoinFlex, which is a centralized exchange that provides investors and institutions with an accessible platform to trade their assets and earn.
The intention of the team-up is to raise a $25 million seed fund to build a new project called GTX. The GTX project is a platform that trades bankruptcy claims from creditors. And according to Su Zhu, that’s the focus of all their building right now.
Claims trading is the purchase or sale of valid claims over bankrupt entities under chapter 11 reorganization. During the initial filing of chapter 11 bankruptcy, there is a period of uncertainty over the possible success of the business and its reorganization, the new management capacity, and the duration of the restructuring, which can be disrupted and prolonged due to internal factors.
In the end, it also takes an uncertain period for assets to be recovered, which is what leads creditors to consider claims trading.
The founders of GTX aim to capitalize on the collapse of FTX and other similar events that took place in the crypto space. They also want access to the $20 billion crypto claims market and enter the $2 trillion securities market.
The executive team of GTX, aside from the founders of 3AC, includes Mark Lamb and Sudhu Arumugam, co-founders of CoinFlex, Kent Deng, the CTO who worked for Alibaba, and Leslie Lamb, the CMO who headed the institutional sales division for Amber group.
The reaction from users in the crypto space is one of Disdain for the actions of Zhu Su and Kyle Davis, believing that they should permanently remain in police custody for their $3.5 billion debt owed to 3AC users and investors.
On the 27th of June, Su and Davis went missing, leaving a bankrupt 3AC. They ran to Indonesia and the UAE. after the FTX crash, and they came out to pin their failings on the SBF and DCG for conspiring to destroy their project.
Before even entering the crypto space, their affairs and history in the FX industry led to banks cutting them off back in 2017.
Once the fundraising is done, the project will launch within the first quarter of 2023.