It was in the summer of 2022 when Three Arrows Capital, a crypto hedge fund, commonly known as 3AC, filed for bankruptcy.
Bankruptcy Filed by 3AC
The bankruptcy case is still ongoing and the bankruptcy court is going through all the aspects of it. The platform faced a demise as a major selloff was recorded for cryptocurrencies and in the entire crypto market.
All of this started with the crash of the Terra Network crash.
The crash ended up bringing down many creditors and firms that were supporting or had their funds stored in the cryptocurrencies managed by the Terra Network.
Three Arrows Capital also found itself on the wrong side and it started to face a financial crisis. The firm revealed it had many funds stored in the form of Terra USD (now USTC) and Terra (now LUNC).
With no way of dealing with the losses, 3AC had no choice but to seek refuge at the bankruptcy court. It filed a protection from creditors and the request was granted to the platform.
The investors who lost their funds to 3AC are still extremely unhappy as they haven’t been reimbursed with a single dime since May 2022.
3AC is Being Mocked
The hedge fund already knows how badly it has dealt with its clients who are not happy at all about the firm’s activities.
Turns out, the platform has found another way of mocking the users but it seems that the investors are now clapping back.
According to the latest communications made by 3AC, it has proposed to launch a new cryptocurrency exchange. The officials have revealed that the name of the new exchange would be GTX.
The main purpose of the exchange would be to offer users the ability to carry out claims for cryptocurrencies.
It seems that the firm was still preparing to release its proposal documents but someone from the inside leaked the preliminary data.
Right after the data was leaked, it was circulated throughout the internet and some users are not happy about it at all.
Many have mocked the name that 3AC has come up with for the exchange. They have pointed out that the platform has chosen a name that resembles the FTX exchange.
The particular exchange brought even more controversy when it crashed in back in November. The FTX exchange was operated by the notorious Sam Bankman-Fried and it also filed for bankruptcy in November.
Funding Round for GTX
Kyle Davies and Su Zhu, the founders at 3AC are reportedly working on conducting a fundraising session for the new exchange.
The inside sources claim that they have brought on board Sudhu Arumugam and Mark Lamb to partner with them in the funding round.
These individuals are already running their exchange CoinFLEX, which they founded. The funding round is expected to bring in $25 million whose proceeds with be used to set up the exchange and run its operations.
The founders of both entities are confident that they their new endeavor will offer something new and very promising to their users.
They want to provide them with an opportunity for liquidity that they had never accessed in the cryptocurrency industry before.
Even the creditors lack an avenue that secures their liquidity and they want to offer it in the form of GTX.
The co-founder of Wintermute, Evgeny Gaevoy, a cryptocurrency market, has recently hinted at actions he may take on his users interacting with GTX.
Gaevoy was not happy with the 3AC working on the launch of a new exchange. He has even shared his concern with the users through an internal letter.
Gaevoy has warned the investors on his platform that if any of them are found interacting with the particular exchange, things may become complicated for them.
He stated that there is no telling whether they will be able to use the Wintermute platform anymore or not.