FTX logo with crypto coins with 100 Dollar bill are displayed for illustration. FTX has filed for bankruptcy in the US, seeking court protection as it looks for a way to return money to users.
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The co-founders of failed cryptocurrency hedge fund Three Arrows Capital are now courting investors for a new venture that looks to capitalize on a growing list of bankruptcies in the space.
Kyle Davies and Su Zhu are listed as founding members in a pitch deck obtained by CNBC for a distressed debt marketplace called GTX. Davies and Zhu founded Three Arrows Capital, a once $10 billion Singapore-based hedge fund that filed for bankruptcy in July. The fund, also known as 3AC, was ordered to liquidate by a British Virgin Islands court after a plunge in prices and risky trades left it unable to repay lenders.
The new investor pitch comes as the Three Arrows founders navigate their own controversial bankruptcy. Advisors working to liquidate 3AC have accused Davies and Zhu of not cooperating with the liquidation process. The advisors served the co-founders a subpoena over Twitter last week, claiming that their whereabouts were still unknown. Representatives from Three Arrows did not respond immediately to CNBC’s request for comment.
The Block first reported the 3AC founders’ plans for a new exchange.
Davies told CNBC in November that he was in Bali and refuted claims that he and his co-founder were not cooperating.
“We’ve been cooperating the whole way,” he told CNBC’s “Squawk Box” in an interview.
Davies and Zhu are part of a group arguing that the so-called crypto “claims” market, in reference to bankruptcies impacting holders of digital currencies, should have a public marketplace. The space has seen a handful of high-profile bankruptcies including BlockFi, Celsius, Three Arrows, and most recently, FTX.
The new marketplace looks to appeal to the more than one million FTX depositors that are now involved in a bankruptcy proceeding, a slide in the…
