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    Su Zhu and Kyle Davies of 3AC Raising $25M for a New Crypto Exchange

    Su Zhu and Kyle Davies, 2 founders of the collapsed crypto hedge fund Three Arrows Capital (3AC), are looking to raise $25 million to start a new crypto exchange.

    The two are teaming up with CoinFlex’s Mark Lamb and Sudhu Arumugam to launch their new venture, which aims to start offering services as soon as February.

    The news comes two months after crypto exchange FTX collapsed, leaving more than a million creditors empty.

    The new exchange will be open to users and creditors of bankrupt companies including FTX, Celsius, BlockFi and Mt.Gox. Participants can hold the debt to maturity or to sell them for cryptocurrency or to use them for leveraged trading. The exchange will also ban employees of the bankrupt company from participating.

    After the initial announcement of the name GTX for the new exchange, the project has received a lot of criticism, allegedly copying the recently bankrupt exchange FTX. The GTX name is being mocked all over Twitter.

    Nic Carter of Castle Island Ventures described the upcoming project as “hawking buckets of water to their victims.”

    Meanwhile, Wintermute founder Evgeny Gaevoy warned anyone investing in GTX would be “bit more difficult to work with wintermute in future.”

    Faced with all criticism, CoinFLEX announced that the upcoming exchange will not be named GTX, The Block reported.

    Three Arrows Capital was one of the biggest hedge funds in crypto space until the collapse of the Terra ecosystem last year, leaving it with significant losses. Financial advisory firm Teneo handled the liquidation of 3AC’s assets and the hedge fund filed for bankruptcy in the United States.

    On the other hand, CoinFLEX has blocked withdrawals since June 24 due to harsh market conditions and difficult business partners, despite claiming not to be affiliated with any lending platform. The company is looking to recover the debt of a whale. CoinFLEX then laid off a significant number of employees to reduce its operating costs by 60% and is in the process of restructuring the company.

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