Disgraced Three Arrows Capital founders Su Zhu and Kyle Davies are pitching investors on a new distressed debt marketplace called GTX.

Three Arrows Capital also known as 3AC was once the darling hedge fund of the crypto space and had more than 10 billion in assets under management. However behind the scenes, the founders effectively gambled their assets on risky trades and the cascade of liquidations triggered by the collapse of Terra Luna left the hedge fund insolvent and unable to repay investors. 3AC was then ordered to liquidate by a court in the British Virgin Islands and the founders fled their HQ in Singapore likely to escape criminal charges.

The name of their new venture is only one letter off from FTX and that is not a coincidence as GTX aims to provide a public marketplace for the crypto claims market consisting of the myriad of bankruptcies the crypto space has seen over the last year.

Building a distressed debt marketplace is ironic as Three Arrows Capital was directly responsible for a number of those bankruptcies as the hedge fund operated more akin to a degen staking firm and its founders are still undergoing bankruptcy proceedings themselves.