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Post: High Court of Singapore Denies Dismissal of Lawsuit Against Three Arrows Capital by DeFiance Capital Founder

High Court of Singapore Denies Dismissal of Lawsuit Against Three Arrows Capital by DeFiance Capital Founder

Key Points:

  • The High Court of Singapore has rejected an application by bankrupt crypto hedge fund Three Arrows Capital (3AC) to dismiss a lawsuit brought against it by Arthur Cheong, founder of DeFiance Capital.
  • Cheong claims that DeFiance Capital investors are the ultimate beneficial owners of assets held in trust by 3AC, and that these funds should not be used to satisfy creditor claims against 3AC’s estate.
  • Cheong had reached an agreement with 3AC founders Su Zhu and Kyle Davies to launch an independent fund on the 3AC Group platform, which would be owned and controlled by him.

Elaboration:

The High Court of Singapore has made a decision regarding the lawsuit brought against Three Arrows Capital (3AC) by Arthur Cheong, founder of DeFiance Capital. Cheong alleges that the funds held in trust by 3AC actually belong to the investors of DeFiance Capital, and that these funds should not be used to satisfy creditor claims against 3AC’s bankruptcy estate.

Cheong and the founders of 3AC, Su Zhu and Kyle Davies, had previously come to an agreement for Cheong to launch an independent fund on the 3AC Group platform. This fund would be owned and controlled by Cheong, and would have access to resources provided by 3AC. However, the dispute arose when Cheong claimed that the assets held in trust by 3AC were actually owned by the investors of DeFiance Capital.

The court’s rejection of 3AC’s application to dismiss the lawsuit means that the case will proceed, allowing Cheong’s claims to be further examined and potentially resolved.

Hot Take:

This decision by the High Court of Singapore highlights the potential complexities and disputes that can arise in the crypto and blockchain space, particularly when it comes to ownership and control of assets. It will be interesting to follow the progress of this lawsuit and see how the court evaluates the claims made by Cheong and the arguments put forth by 3AC. The outcome of this case could potentially have implications for the broader crypto industry and how ownership of assets is determined in similar situations.

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