Financial TimesFinancial Times

The clowns of cryptoland haven’t given up

By Jemima Kelly

19 Jan 2023 · 3 min read

Editor's Note

The FT's Jemima Kelly reckons crypto is only really about one thing: making a quick buck. She cites a new venture fronted by the founders of a bankrupt hedge fund that's prompted "giggles and groans."

You would be forgiven for thinking that, with Sam Bankman-Fried awaiting trial over the allegedly “epic” fraud at FTX, the collapse of a raft of crypto platforms and US regulators suing two major crypto firms for selling unregistered securities, the clowns of cryptoland might try to stay below the parapet for a while. But, sadly, you would be wrong.

This week the giggles and groans came courtesy of a new venture calling itself “GTX”, whose co-founders, Su Zhu and Kyle Davies, are none other than the co-founders of the bankrupt crypto hedge fund Three Arrows Capital. The fund collapsed last year, dragging many other crypto firms down with it. It is being investigated in the US over whether it broke rules by misleading investors about the health of its balance sheet.

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