For illustration purposes, you will see the FTX logo on a crypto coin on a $100 bill. FTX has filed for bankruptcy in the US and is seeking court protection as it seeks a way to return money to its users.
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The co-founder of a now-liquidated cryptocurrency hedge fund is recruiting investors for a new trading market aimed at capitalizing on the rise in bankruptcies related to digital currencies.
Kyle Davies and Su Zhu are listed under a slide of founding members of a pitch deck obtained by CNBC for the bad debt market called GTX. Davies and Zhu founded Three Arrows Capital, a Singapore-based cryptocurrency hedge fund. ordered to liquidate By the courts of the British Virgin Islands.
The deck states that Three Arrows Capital will “go bankrupt in 2022”.was formerly considered one of The most famous crypto hedge fund once managed About $10 billion in assets.
Adherents of technology and financial exchanges are increasingly interested in how bankruptcy and fraud within the crypto space are handled. Collapse of FTX. Davies and Zhu are part of a group that argues that the so-called cryptocurrency “claims” market should have an open market for bankruptcies affecting digital currency owners.
It aims to appeal to the more than 1 million FTX depositors currently involved in bankruptcy proceedings, the pitch deck slides said. Deck says many of these FTX clients are selling their claims at about one-tenth the value for instant liquidity in an attempt to avoid potentially years of waiting for repayment. I’m here.
They cited a “clear need to unlock” the claims market, valued at $20 billion, and believe GTX could “dominate” it within two to three months. expands, it could fill the “power vacuum left by FTX” in cryptocurrency trading and enter the securities lending market, he said in his pitch.
According to Deck, GTX has raised $25 million in seed for the platform and aims to hit the market by the end of February at the latest.
Mark Lamb and Sudhu Arumugam, co-founders of crypto trading platform CoinFLEX, are listed alongside Davies and Zhu as founding members. Representatives for CoinFLEX and Three Arrows Capital did not immediately respond to CNBC’s requests for comment.
Along with the four founding members, GTX has Kent Deng as its CTO, Leslie Lamb as its CMO, and Ewelina Mielecka as its chief digital officer. According to Deck, GTX has his team of over 60 developers.
— CNBC’s MacKenzie Sigalos contributed to the report
