“I have a dream that one day the Zhupercycle will come true” — Su Zhu probably.
Su Zhu and Kyle Davies of Three Arrows Capital (3ac) glory have started their new venture after their fund went bust.
Their pitch deck was leaked and they flexed some 3ac numbers that were previously hidden.
They started with $1.2m of partner capital (raised from family + some personal capital) in 2012 and then did a 40x in FX before doing a 80x in crypto ($1.2m x 40 x 80 = $3.84B).
Then they went bust going all in on the Supercycle dreams and falling for the most obvious ponzi of 2021.
They then went incognito for a while before coming alive after the collapse of FTX.
Now on Twitter they continue to blame FTX and SBF for their trading losses (they claim they were stop hunted because they had the largest long positions on the exchange lmao) and have also decided to ghost creditors in Bali where there is no extradition treaty with the United States.
Their liquidators continue to complain about their lack of cooperation in liquidating 3ac assets and returning funds to 3ac creditors and lenders. But that doesn’t matter.
What matters is making it all back.
They are creating GTX together with the founders of CoinFlex. Apparently CoinFLEX is an exchange that is still currently running but withdrawals are halted (since June 2022) lmao.
The way their exchange went bust is truly remarkable. The founders fell in love with Bitcoin Cash and Roger Ver. They then allowed Roger to run up a $84 million margin position on CoinFLEX and default on his loan repayments. This made the exchange insolvent and rugged users.
This gang is raising $25m for GTX which is an exchange that will allow people to trade crypto creditors bankruptcy claims (e.g. FTX, Celsius, Mt Gox).
AHAHAHHAHAHAHHAHAHAH
This is like if Jeff Bezos started a company that bought existing inventory from mom and pop shops that had to close down due to lack of demand or if Elon Musk started a mental health support group for Tesla shareholders who are down 70% on their investment.
Also interesting to note how much one can fall. From a $20 BILLION dollar crypto fund nuked to zero and having to ask investors to raise $25m for your new venture (with 2 other people!) in the span of 13 months.
This is just like Napoleon on St. Helena fr fr.
I still think that Su Zhu and Kyle have some form of crypto stack that is hidden from creditors and bankruptcy lawyers or millions in a shell company bank account that is under their wife’s uncle’s brother’s dog’s toy bone’s name.
Su Zhu really liked the book “The Sovereign Individual” and all he did was quote paragraphs from the book in the weeks before his fund collapsed. I would be very shocked if he didn’t have millions of dollars in BTC or ETH stashed away (maybe even hidden from Kyle).
I am no Chapter 15 Bankruptcy Expert but I am sure that these assets will be seized if Su uses it for his new enterprise.
Anyways, back to GTX.
GTX was chosen because the next letter in the alphabet after F was G and they thought GTX would be a funny name for an exchange. Got to appreciate the humor from a bunch of bankrupt people.
The ideas seems good to me. There is already a ‘underground’ market of sorts for bankruptcy claims and it would be nice if normie retail or anons can trade it.
This would also be a great way for Alameda and friends to make it all back. Use insider info, trade FTX claims. Bart. Liquidate plebs. New Bahamas penthouse paid for.
One funny thing is that one large FTX claims buyer is Avi who was recently arrested in Puerto Rico for his highly profitable trading strategies. He was playing around too much and flexing his profits while in the dark grey zones of crypto and the FBI arrested him.
He claimed in a series of tweets that he bought 8 figs worth of FTX accounts at 10c on the dollar. So I am assuming he spent low 7 fig on FTX accounts that are worth 8 figs because he made like $50m from that highly profitable mango markets arbitrage. Also funny that he executed that trade on FTX to ‘manipulate’ the price. So he technically ‘stole’ from FTX and then returned it back to the victims of the fraud at FTX. real life robinhood fr fr.
Anyways, interested to see what happens with GTX and the Su Zhu redemption arc. Also CT is absolutely delusional when it comes to Su Zhu takes.
CT considers Su Zhu and SBF to be the same level of fraud which is ridiculous.
One posted bulltard tweets and was the poster boy of Up Only low interest rate bull markets supercycle revanchist dynastic epochal wealth which he truly believed in publicly and faced the consequences by having his $4B hedge fund nuked back to reality. In his final few days, allegedly he asked business partners for money to raise for a GBTC trading strategy of sorts which was used to fill up the massive hole in 3ac balance sheet. This sum was apparently in the 7 fig to 8 fig range.
On the other hand, the other stole $20B+ of other people’s money and spent it on Bahamas Penthouses, bad trading strategies, ‘lobbying’ U.S. politicians, donating to democrat political campaigns, donating to media companies (to get them on his side even after FTX crashed), stadiums, ad campaigns, celebrity endorsements and more.
You get the idea.
One is ‘smaller’ alleged crime while the other is outright fraud in the scale of tens of billions in liquid assets and almost $100b+ in valuations.
Anyways, GTX built by the bankrupt for the bankrupt etc. etc.
