Arthur Hayes says 3AC founders have raised funds to launch GTX

The founders of the collapsed hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, have raised funds to launch the cryptocurrency exchange GTX, according to former BitMEX CEO Arthur Hayes.

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

“Birds have chirped that Kyle Davies and Su Zhu have completed their fundraising. It must be the start of a bull market if these muppets got money less than a year after they burned $18 billion on shitcoins,” he wrote.

Information about the successful fundraising spread by other sources on Twitter.

BREAKING: Unsuccessful and liquidated hedge fund 3AC, has successfully completed funding for a new crypto exchange GTX.

— whalechart.org (@WhaleChart) February 4, 2023

Neither of them specified how much funding the 3AC founders managed to raise.

NEWS

“GTX” (the notorious FTX “successor”) the new #Crypto Exchange by 3AC have successfully completed their round of funding 😳

— Satoshi Stacker (@StackerSatoshi) February 4, 2023

In January, media reported plans by Davies and Zhu to raise $25 million to launch the GTX cryptocurrency exchange. The 3AC founders allegedly were collaborating with CoinFLEX co-founders Mark Lamb and Sudhu Arumugam.

According to journalist Colin Wu, it is a platform for trading creditors’ claims.

Twitter users mocked the idea of Davies and Zhu launching a new project.

Three arrows capital founders are seeking funding for their new exchange called GTX #cryptofunny pic.twitter.com/wnl2MrE4rg

— Crypto believer (@CryptoSportsIO) February 3, 2023

In May 2022, after the crypto market crash and the Terra collapse, reports emerged of possible insolvency of Three Arrows Capital.

In late June the British Virgin Islands court ordered liquidation of the hedge fund. In July, 3AC filed for bankruptcy in a New York court. According to Nansen, the group managed assets of about $10 billion.

Subsequently, Zhu and Davies attributed the 3AC collapse to overconfidence.

In December, the liquidators of Three Arrows Capital recovered $35.6 million owned by the hedge fund in Singapore banks, and filed a motion to sell a $30 million superyacht.