Former BitMEX CEO links the launch of the GTX exchange with the beginning of the bull market

Arthur Hayes noted that the founders of hedge fund 3AC, which went bankrupt less than a year ago, were able to raise $25 million to launch the platform

06.02.2023 - 09:00

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What’s new? Former BitMEX CEO Arthur Hayes tweeted that founders of bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) Zhu Su and Kyle Davies teamed up with co-founders of crypto platform CoinFLEX Mark Lamb and Sudhu Arumugam to raise funding for the GTX exchange launch. According to him, the fact that the businessmen were able to raise $25 million indicates the beginning of the bull market. That said, Hayes recalled, 3AC collapsed less than a year ago.

Little birdie told me @KyleLDavies and @zhusu completed their raise. Must be the beginnings of a bull market if these muppets get money less than one year after they torched $18 billion on shitcoins. I ain’t mad at ya, but homeboy needs his money back lift tickets be expensive — Arthur Hayes (@CryptoHayes) February 3, 2023

What is known about the GTX launch? The media learned of plans by the founders of 3AC and CoinFLEX to launch a new crypto exchange in January. The news of a $25 million fundraiser appeared online two months after the FTX cryptocurrency exchange went bankrupt, leaving more than a million lenders without funds. That said, one of the presentations of the new GTX exchange begins with the headline “because G comes after F,” and suggests that FTX creditors will transfer their rights to the bankrupt exchange’s assets to GTX.

Journalists at The Block reported that 3AC owned ~$1 billion in assets as of July 2022. Teneo, 3AC’s liquidator, has been unable to reach out to the fund’s founders, noting that they have been actively interviewing and communicating with subscribers on social media, “predominantly with respect to the collapse of FTX.”

The founders of 3AC themselves explained the bankruptcy of the fund by the collapse of the blockchain ecosystem Terra — then the project’s team initiated the sale of bitcoin to maintain its stablecoin UST, which led to a drop in the price of many cryptocurrencies so that lenders began to demand repayment of loans.

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