Market Analysis Report (17 Jan 2023)

Market Analysis Report (17 Jan 2023)

Market Analysis Report (17 Jan 2023) PlatoBlockchain Data Intelligence. Vertical Search. Ai.

The co-founders of bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) are pitching investors a new venture that wants to capitalize on the growing list of bankruptcies in the cryptocurrency space.

According to a circulating pitch deck, Kyle Davies and Su Zhu are listed as founding members of a distressed debt marketplace called GTX. Davies and Zhu are known for founding 3AC, a hedge fund that at one point had $10 billion in assets, but filed for bankruptcy in July.

The fund was ordered to liquidate by a British Virgin Islands court after it was unable to repay lenders as the cryptocurrency bear market deepened. Advisors tasked with the liquidation of 3AC have claimed that Davies and Zhu have not been assisting in the process. Last week, the advisors served a subpoena to the co-founders via Twitter, stating that their current location is still unknown.

The new marketplace aims to attract over one million FTX depositors who are currently in the middle of a bankruptcy proceeding, according to the presentation deck. Many of these FTX clients are selling their claims at a fraction of their worth to get money quickly, rather than waiting for a potential long-term repayment, the deck reads.

The deck cites a “clear need to unlock” the claims market, which they value at $20 billion. GTX is looking to raise $25 million, with the goal of coming to the market by the end of February at the latest.

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