DeFiance Capital Distances Itself from Three Arrows Capital Hedge Fund

The venture firm DeFiance Capital said it was operationally independent from the hedge fund Three Arrows Capital (3AC), which is currently undergoing bankruptcy proceedings. In the past it was positioned as its “sub-fund”.

Our statement on recent event. pic.twitter.com/UfoJG7qGSG

— DeFiance Capital (@DeFianceCapital) July 15, 2022

The document states that founder Arthur Cheong registered the firm in 2020 as “fully independent” from Three Arrows Capital. A similar characterization appears on сайте компании.

«Arthur never had any involvement with or in the management of 3AC and/or its subsidiaries. He did not have access to the hedge fund’s financial reports and documents and learned of its solvency problems in mid-June 2022, when the news was disseminated by the media», — the statement explains.

DeFiance Capital says it was a counterparty to 3AC and its liquidation affected the business, causing damage.

«Arthur Cheong intends to take all necessary steps to protect, preserve and recover all assets that belong to and were owned in the context of DeFiance Capital», — the document states.

Earlier схожую позицию заняла TPS Capital, которая на LinkedIn позиционировала себя как OTC-подразделение Three Arrows Capital.

Earlier in June, Cheongзаверил investors that operations would continue in light of 3AC’s problems.

According to the press, the liquidators of Three Arrows Capital are trying to провести расследование and preserve the Singapore assets of the bankrupt crypto hedge fund.

In early July 3AC filed for bankruptcy in a New York court.

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