Singapore High Court greenlights DeFiance Capital suit against 3AC
At issue is whether funds held by 3AC were in trust for DeFiance Capital or owned by the bankrupt crypto hedge fund.
The High Court of Singapore has rejected an application by bankrupt crypto hedge fund Three Arrows Capital (3AC) to dismiss the suit brought against it by Cheong Jun Yoong, otherwise known as Arthur Cheong, in August. Cheong is the founder of Web3 investment firm DeFiance Capital.
Cheong claimed in a suit filed in April 2023 that DeFiance Capital investors were the ultimate beneficial owners of assets held in trust by 3AC and the 3AC estate should not use those funds to satisfy creditor claims against it.
The claimant reached an agreement with Su Zhu and Kyle Davies to launch an “independent and standalone fund on the 3AC Group platform, which would be owned and controlled by the claimant.” The fund had access to 3AC resources such as its middle- and back-office infrastructure, fund administrators and auditors.
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