Follow us on:

cc_icon

Post: High Court Rejects 3AC’s Application, Lawsuit Against Three Arrows Capital Continues

High Court Rejects 3AC’s Application, Lawsuit Against Three Arrows Capital Continues

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 Web3 investment firm DeFiance Capital.
  • Cheong claimed that DeFiance Capital investors were the ultimate beneficial owners of assets held in trust by 3AC and those funds should not be used to satisfy creditor claims.
  • Cheong and 3AC had reached an agreement to launch an independent fund on the 3AC platform, which would be owned and controlled by Cheong.

Rejected Application by 3AC:

The High Court of Singapore has denied an application by bankrupt crypto hedge fund Three Arrows Capital (3AC) to dismiss a lawsuit filed against it by Arthur Cheong, the founder of Web3 investment firm DeFiance Capital. Cheong had accused 3AC of holding assets in trust for DeFiance Capital investors and argued that those funds should not be used to satisfy the claims of 3AC’s creditors.

Claimant’s Allegations:

Cheong’s lawsuit, filed in April 2023, asserted that DeFiance Capital investors were the true owners of assets held in trust by 3AC. He further claimed that the 3AC estate should not have access to those funds to settle its creditor obligations. As part of the legal proceedings, Cheong had reached an agreement with Su Zhu and Kyle Davies, involving the launch of an independent fund on the 3AC platform. This fund would be owned and controlled by Cheong, and it would have access to the resources and infrastructure provided by 3AC.

Hot Take:

This ruling by the High Court of Singapore indicates that the case between DeFiance Capital and 3AC will proceed. It will be interesting to see how the court examines the evidence and determines the ownership of the funds in question. The outcome of this case could have significant implications for the broader crypto hedge fund industry, as it could establish legal precedents regarding the ownership and use of funds held by such funds.

Recent Posts
Social Media
Twitter
Email
Telegram
Facebook
Offers
CheekyCrypto Membership Platform
Hardware Wallets
Bitget
Swissborg
Plutus Card