John Reed Stark Mocks 3AC’s New Exchange CoinFLEX

• John Reed Stark mocks bankrupt Three Arrow Capital and CoinFlex’s new venture.
• The partnership is looking to raise $25 million to fund a new exchange based on claims trading.
• The exchange will offer FTX creditors the opportunity to transfer their claims to GTX.

John Reed Stark of John Reed Stark Consulting LLC retweeted a post on January 17, announcing a collaboration between bankrupt crypto hedge fund Three Arrows Capital (3AC) and fallen exchange CoinFLEX to power a new cryptocurrency exchange.

He mocked the partnership, adding that such a collaborative venture between two bankrupt entities will only be possible in an “upside down world of crypto.” He further shares that whatever will come next will be even more “mind-boggling,” such as “Elizabeth Holmes raising money to start a new drug manufacturing firm?”

The original tweet was posted by Jacob Silverman, a crypto and finance journalist, and CEO of Kroll. Alongside sharing the headline of the new venture, he mentioned that both the 3AC Digital founders have been residing in non-extradition countries since the collapse of their business.

According to two separate pitch decks, the founders Su Zhu and Kyle Davies, alongside CoinFlex’s Mark Lamb and Sudhu Arumugam, are pitching investors on a new claims trading-focused crypto exchange and trying to fund $25 million “asap.”

Additionally, the exchange named GTX is aiming to offer depositors who are out of pocket after the FTX meltdown the chance to transfer their FTX claims to GTX and receive immediate credit in a token called USDG.

Moreover, GTX’s executive team also consists of multiple CoinFlex executives, including the platform’s general counsel and chief technology officer. Alongside CoinFlex’s team and technology, GTX will also employ a legal team that will oversee the onboarding of claims for all the latest crypto bankruptcies, including Celsius and Voyager.