MtGOX + FTX = GTX

[adaseb]

You think we have seen it all but get this. 3AC is basically trying to generate funds to launch an exchange called GTX. So pretty much its like GOX + FTX = GTX combined. At first I assumed this was a joke but it was posted on WSJ

https://www.wsj.com/articles/founders-of-bankrupt-three-arrows-capital-plan-trading-platform-for-distressed-crypto-debt-11673889546

So they basically want to trade an exchange which trades creditor claims. So since many are owed MtGox, Celcious, FTX claims they can sell their claim for pennies on the dollar and get some money back NOW instead of waiting a few years. MtGox claims I think were something like 20% back in 2015. The more evidence of the company being solvent then obviously the higher the claim will be.

However....

Not only is this being run by 3AC, which we all know aren't the most honestly due to their collapse. Another reason is how can you sell these claims exactly?  DO you give your email+password+2fa and sell it like that? How does someone prove how much funds you had on FTX since the website is down. No idea how this is even possible.

Crypto getting weirder and weirder everyday.

[1714568514]

1714568514

[davis196]

This seems like another crypto scam. It's like trying to sell a bunch of canned air. The price would most likely be really low, but at the end of the day, the buyers would be buying something that probably doesn't even exist.
I agree that nobody can prove whether or not the claims are real. What if those claims can be fabricated?
Also nobody can say when the claims will be paid. Such court cases are taking years before the final verdict.
The reputation of Three Arrows Capital is already damaged and I don't know that many people would fall for this weird idea.

[mk4]

Apparently, they've changed their mind[1] in using the GTX name due to the public backlash. Like, what were they expecting in the first place? Praise? After naming their platform after platforms that went bust? Lmao.


[1] https://www.theblock.co/post/202661/coinflex-says-new-exchange-with-3ac-founders-wont-use-gtx-name-after-twitter-ridicule

[hugeblack]

So they basically want to trade an exchange which trades creditor claims. So since many are owed MtGox, Celcious, FTX claims they can sell their claim for pennies on the dollar and get some money back NOW instead of waiting a few years. MtGox claims I think were something like 20% back in 2015. The more evidence of the company being solvent then obviously the higher the claim will be.

Think of it as those ICOs that give a free airdrop (USDG) in certain amounts, then if the campaign succeeds and obtains the necessary liquidity, it will begin to fulfill the value of the debts, otherwise it will collapse, as happened with FTX.
As for the claims, they will set easy conditions at the beginning, and after people trust, they will tighten a little, but I see nothing more than scam or a new network marketing system where the money of the first clients is what finances the project, in addition to the debts, and the printing of these free tokens.

The most important question is, is this legally permissible (assuming it is real)?

[Hydrogen]

So they basically want to trade an exchange which trades creditor claims. So since many are owed MtGox, Celcious, FTX claims they can sell their claim for pennies on the dollar and get some money back NOW instead of waiting a few years. MtGox claims I think were something like 20% back in 2015. The more evidence of the company being solvent then obviously the higher the claim will be.

Another reason is how can you sell these claims exactly?  DO you give your email+password+2fa and sell it like that? How does someone prove how much funds you had on FTX since the website is down. No idea how this is even possible.

Crypto getting weirder and weirder everyday.

The 2008 financial crisis is sometimes referred to as a subprime mortgage crisis. There were derivatives called CDOs, collaterized debt obligations. Which were bundles of subprime mortgages that were traded with leverage.

It is possible they could bundle FTX creditor claims in a similar fashion to the way CDOs bundled subprime mortgages in 2008. While it may not necessarily be a stable investment vehicle. It could be prone to volatility considering what the latest news release was. While it might take years for FTX depositors to have a chance of recouping their investment if they follow a normal legal path. If they instead choose to sell off the rights to their holdings, they could be able to recover a fraction of their account balance in a short span of time.

The format could be similar to an auction for those with claims on FTX assets. Except rather than a one time sale, the assets would be actively traded?

While the FTX website might be down. They should have accurate record keeping and data backups. I don't think this option would necessarily be available to all account holders. It could be that only the larger investors could be compensated this way.

[pawel7777]

...
It is possible they could bundle FTX creditor claims in a similar fashion to the way CDOs bundled subprime mortgages in 2008. While it may not necessarily be a stable investment vehicle....

I can't get my head around that... How would you even bundle and sell creditors' claims? You could potentially do it with debtors' balances but not creditors. The only person able to sell creditors' claims would be the creditors themselves.

Can't read the article linked in the OP in full as it's behind paywall, but sounds like a very basic idea of people just being able to buy/sell the existing (approved?) claims.

As ridiculous as it sounds at first, it's actually not a bad idea. I won't be surprised if there were many people happy to sell their claims at discount to save themselves potentially years-long wait for the uncertain outcome. If the price is right, they could benefit from that.

[adaseb]

Yes it’s not a bad idea however the only way this is possible is if the liquidator allows GTX to be able to settle claims for certain creditors. Which they won’t allow.

Because right now I can say that I had $100,000,000 worth of assets on FTX and I’ll sell you my claim for 0.01%. And how will the purchaser be able to prove its valid and true? The website is down. If it was back up and they enabled that FTX Send option where you could send your FTX bucks to another FTX customer within the exchange then I can see it working. However that is clearly not the case here.

[pawel7777]

Yes it’s not a bad idea however the only way this is possible is if the liquidator allows GTX to be able to settle claims for certain creditors. Which they won’t allow.

Because right now I can say that I had $100,000,000 worth of assets on FTX and I’ll sell you my claim for 0.01%. And how will the purchaser be able to prove its valid and true? The website is down. If it was back up and they enabled that FTX Send option where you could send your FTX bucks to another FTX customer within the exchange then I can see it working. However that is clearly not the case here.

I guess the assumption is that there are reliable records available and that value of claims for each customer can be determined and verified, rather than self-reported. In such case, you would just register on the new platform as a former customer of Gox/FTX, verify your id and then you'll see your available for trade balance.

The website being down doesn't mean that there are no records anymore.

But that's probably sounds easier than it would be in practice, as the litigation is ongoing, it may be impossible to determine with 100% accuracy what is each creditor entitled to (as not all of them are former customers) + possibly dozens of other obstacles.

[Fortify]

You think we have seen it all but get this. 3AC is basically trying to generate funds to launch an exchange called GTX. So pretty much its like GOX + FTX = GTX combined. At first I assumed this was a joke but it was posted on WSJ

https://www.wsj.com/articles/founders-of-bankrupt-three-arrows-capital-plan-trading-platform-for-distressed-crypto-debt-11673889546

So they basically want to trade an exchange which trades creditor claims. So since many are owed MtGox, Celcious, FTX claims they can sell their claim for pennies on the dollar and get some money back NOW instead of waiting a few years. MtGox claims I think were something like 20% back in 2015. The more evidence of the company being solvent then obviously the higher the claim will be.

However....

Not only is this being run by 3AC, which we all know aren't the most honestly due to their collapse. Another reason is how can you sell these claims exactly?  DO you give your email+password+2fa and sell it like that? How does someone prove how much funds you had on FTX since the website is down. No idea how this is even possible.

Crypto getting weirder and weirder everyday.

They sound like a bunch of snakes quite honestly, while it sounds noble they are likely just trying to extract additional money from people who have potentially lost a lot. Like many administration type solicitors, it often works in their interest to drag out the creditor negotiation process as long as possible and racking up fees while sending endless reams of pointless paperwork to clients - often burning off what little value might be left in such companies. Such high profile failures are quite rare and often the end result is they failed because large (like 80-90%) chunks of user funds have evaporated, so if you imagine such a small amount is left you'd be lucky to get paid 1% of your initial amount upfront with all risks involved.

[darkangel11]

Apparently, they've changed their mind[1] in using the GTX name due to the public backlash. Like, what were they expecting in the first place? Praise? After naming their platform after platforms that went bust? Lmao.


[1] https://www.theblock.co/post/202661/coinflex-says-new-exchange-with-3ac-founders-wont-use-gtx-name-after-twitter-ridicule

These people aren't normal.

I've noticed over the years that most of these scammers, hackers and frauds are like aliens from another planet. I'll give you some examples.
Mark Karpeles, who knew his exchange was bankrupt due to someone withdrawing money from it through a bug, or a backdoor, decided to buy himself some hookers and forget about it. He also bought an apartment with a toilet situated in front of a large window to look at the city from above while taking a dump.

The woman responsible for laundering money from the bitfinex hack spent some of it to promote herself as a raper and record music videos. Somebody should've told her that she sucked at it.

SBF refused to form a board or use books. He didn't even know how much coins and on what platform his company has. In an interview he admitted to not making anyone sign up on the loans they were taking. You'd just have to ask him and you could get up to a billion USD, without signing anything. He also drove a toyota to show he's poor, but had a yacht and bought his parents a house, despite his company being insolvent and made a drug addict with no experience in trading a CEO of his trading branch, because apparently she allowed him to fuck her a few times.

I don't know much about the people who run 3ac but I bet they're a bunch of weirdos.

[dansus021]

sorry is three arrow capital already bankrupt and they still want to make an exchange, centralized exchange is serious business right and after mtgox ftx and other bunch of fake scam exchange, I don't know if people still wanna try it out

[mk4]

sorry is three arrow capital already bankrupt and they still want to make an exchange, centralized exchange is serious business right and after mtgox ftx and other bunch of fake scam exchange, I don't know if people still wanna try it out

With most business/companies that require a crap ton of money to operate(like exchanges, in this case), they seek funding(investments) from venture capitalist groups and angel investors — and that's definitely what they're trying to do here.