- Open Exchange, which had a placeholder name of GTX, is to open soon
- The exchange, created by Three Arrows Capital co-founders Su Zhu and Kyle Davies, will trade on claims of bankrupt crypto entities
- 3AC helped bankrupt some of these platforms by their incredible mismanagement
The founders of the collapsed crypto hedge fund Three Arrows Capital (3AC) have launched their platform which facilitates the sale and purchase of claims on bankrupt crypto entities. Open Exchange, which under its holding name GTX was mercilessly mocked when news of it broke last month, opened its waiting list for those who wish to trade their claims, some of which were brought about directly due to the actions of 3AC founders Su Zhu and Kyle Davies when they spectacularly blew up their fund last year.
Zhu and Davies Rise From Their Self-created Ashes
When the Open Exchange (then GTX) pitch deck was leaked last month, the crypto world was staggered that Zhu and Davies were able to convince backers of another crypto scheme, given that their last one saw them lose $3 billion in a matter of weeks. This led to lawsuits from creditors who believed it the only way to get their money back and claims that the pair were refusing to cooperate over the true extent of their wealth.
Zhu and Davies partnered with the co-founders of Coinflex, who themselves are in a bit of a financial pickle given that they’re fighting Roger Ver for $84 million and the company has had to go through its own restructuring, and it seems they raised the $25 million they were seeking in order to launch their new scheme.
Announcement Goes as Well as Expected
Perhaps understandably, the announcement on Twitter, and the lengthy, LENGTHY, tweet thread that, incredibly, included the claim that the founders “felt a duty to take all the hard lessons and use them to advance the crypto industry”, didn’t go down well:
∫\ \___( •_•) I trust you Kyle & Zhu
_∫∫ _∫∫ \ \
— ZachXBT (@zachxbt) February 9, 2023
For those living under a rock if you sign up for this exchange you are trusting these people with your money https://t.co/sCEQhpjB0q
— nic carter (@nic__carter) February 9, 2023
Crypto: the industry so full of scams and rug pulls that scammers and rug pullers made an exchange to trade claims from scams and rug pulls.
— Autism Capital 🧩 (@AutismCapital) February 9, 2023
Whether anyone will actually trust the pair with their money again will only be seen over time, but, for the time being at least, this is the kind of response they can expect, and for good reason.