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TEXXR

Chronicles

The story behind the story

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Pitch decks: Three Arrows Capital founders Su Zhu and Kyle Davies are hoping to raise $25M to start crypto exchange GTX, partnering with two CoinFlex executives

- Su Zhu and Kyle Davies, the founders of collapsed crypto hedge fund Three Arrows Capital (3AC), are hoping to raise $25 million …

The Block

Context & Ripple Effects

The proposed GTX venture follows Three Arrows Capital's collapse, documented in coverage of the founders' high-conviction bet on rising crypto prices. It also arrives as liquidators were still seeking documents from Su Zhu and Kyle Davies through a publicly served subpoena.

That sequence makes the fundraising effort more than a new exchange pitch: it is an attempt by the 3AC founders to return to crypto market infrastructure while the prior firm's unwinding remains active.

First-order effects

  • GTX's proposed $25 million raise puts Su Zhu, Kyle Davies and the two CoinFlex executives together at the center of a new exchange venture, making its financing contingent on backers accepting that leadership mix.
  • The founders' unresolved cooperation dispute with 3AC liquidators becomes an immediate credibility issue for GTX rather than a separate legacy matter.

Second-order effects

  • GTX would have to compete for users and capital with its founders' 3AC record as a material part of its market identity, turning trust into a more direct competitive constraint.
  • The CoinFlex executives' participation links their professional reputations to whether GTX can distinguish a new exchange operation from the governance and risk failures associated with 3AC.

Third-order effects

  • If GTX secures financing, it would test whether crypto founders can move from a failed leveraged firm into new market infrastructure before the earlier liquidation process is resolved.
  • The episode points to a crypto legitimacy gap in which capital can finance new ventures faster than counterparties, users and courts resolve accountability from prior failures.

The trend: Crypto market infrastructure is being shaped by a widening gap between founders' ability to launch new ventures and the slower process of establishing accountability for failed ones.

Discussion

  • @tree_of_alpha @tree_of_alpha on x
    Rumours that 3AC is circulating a pitch to raise $25m going around and it better be fake or I'm gonna lose it. https://twitter.com/...
  • @eliotwb Eliot Brown on x
    This is kinda like the https://pets.com/ founder starting an energy trading company in 2002 and calling it Enrom Also: “the new venture, which aims to start offering trading in crypto bankruptcy claims.” **the founders' firm is in bankruptcy**
  • @eliotwb Eliot Brown on x
    Step 1) Lose billions Step 2) raise more money a perennial story https://twitter.com/...
  • @basedkarbon @basedkarbon on x
    Omega grifters camping out in non-extradition countries trying to raise $25M to build an exchange. Y'all asses just got served on twitter last week, sit tf down. Any VC who falls for this crap deserves to be swindled.
  • @tier10k @tier10k on x
    Will 3AC claims be tradeable on GTX? https://twitter.com/...
  • @dogetoshi Steven on x
    What makes the founders of CoinFLEX think they can run a successful exchange? https://twitter.com/...
  • @crypto_crib_ @crypto_crib_ on x
    3AC founders Zhu and Davies are aiming raise $25 million for new crypto exchange “GTX” What could go wrong?! https://twitter.com/...
  • @sassal0x @sassal0x on x
    Anyone who gives these clowns money deserves to lose absolutely everything https://twitter.com/...
  • @tree_of_alpha @tree_of_alpha on x
    Started with $1.2M of partner capital, grew to $4B+ (then lost it all and some more gambling like retards and rugged an entire asset class & dozens of investors)
  • @evgenygaevoy @evgenygaevoy on x
    And since we are talking about cancelling stuff, if you are investing into coinflex/3ac “exchange” you might find it a bit more difficult to work with wintermute in future (on the relationship building side)
  • @bigmagicdao Molly on x
    The problem, the solution .. https://twitter.com/...
  • @bigmagicdao Molly on x
    “GTX cross-asset trading on a public market ” after stole LPs &friends &institution's money, and lose it all, they get get inspired by ftx and Sam https://twitter.com/...
  • @asvanevik @asvanevik on x
    surely satire - “GTX” https://twitter.com/...
  • @cl207 @cl207 on x
    suzhu love loverage so much hes wants us to use non existent assets claims from future to obtain leverage and trade lmeow
  • @loopifyyy @loopifyyy on x
    3AC back again raising $25M for a new project they are working on thoughts https://twitter.com/...
  • @jconorgrogan Conor on x
    “40x in FX and 80x in crypto before 3AC went bust in 2022” is a pretty amazing bullet point https://twitter.com/...
  • @bigmagicdao Molly on x
    You 3ac boys is raising 25m https://twitter.com/...
  • @bigmagicdao Molly on x
    Look .. lmao https://twitter.com/...