2024

Arthur

Defiance

The High Court of Singapore turned down plea from the now-defunct crypto hedge fund Three Arrows Capital (<a href="https://cryptonews.com/tags/three-arrows-capital/" rel="noopener noreferrer nofollow">3AC</a>) to dismiss DeFiance Capital’s lawsuit filed against the fund.
In a <a href="https://www.elitigation.sg/gd/s/2024_SGHC_21" rel="noopener noreferrer nofollow">recent hearing</a>, Judge Chua Lee Ming gave greenlight to Defiance Capital in its $140 million dispute with 3AC. Further, the court ordered 3AC to pay SG$15,000 and legal disbursements to DeFiance Capital.
A former restructuring attorney, who goes by the pseudonym WassieLawyer, wrote series of posts on X (Twitter), explaining the case. He has been working with DeFiance Capital founder Arthur Cheong on the case.
1/ A decision relating to <a href="https://twitter.com/DeFianceCapital?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@DeFianceCapital</a>'s lawsuit against 3AC in Singapore has just been made public and contains some interesting points around the treatment of cryptoassets and trust relationships.
For context, I have been working with <a href="https://twitter.com/Arthur_0x?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Arthur_0x</a> on this for the past year.
— wassielawyer （哇西律师） (@wassielawyer) <a href="https://twitter.com/wassielawyer/status/1752715467444346922?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 31, 2024</a>
<h2 id="defiance-capital-s-dispute-against-3ac">DeFiance Capital’s Dispute Against 3AC</h2>
 For the past year, DeFiance Capital has been locked in a dispute with the beleaguered 3AC, that <a href="https://cryptonews.com/news/crypto-turmoil-3ac-files-for-bankruptcy-ftx-and-blockfi-agree-suspensions-at-voyager.htm" rel="noopener noreferrer nofollow">filed for Chapter 11 bankruptcy</a> on June 30, 2022. The hedge fund claimed that the investor’s assets belong to the 3AC and should be paid to creditors of 3AC.
Arthur Cheong wrote in a <a href="https://writing.defiance.capital/our-statement-and-update-on-dispute-with-three-arrows-capital-ltd-3ac-2a2624ebee5a" rel="noopener noreferrer nofollow">recent blog post</a> that his company has been trying hard to help the liquidators of 3AC understand that “DeFiance Capital have exclusive, unfettered control and beneficial ownership over its assets.”
The court declared that though Cheong’s assets were placed on 3AC platform, he had an independent control over it. In the legal pursuit against 3AC firm, DeFiance gained full support from the court. According to WassieLawyer, the move brings some “much-needed vindication” for Cheong.
<h2 id="we-are-delighted-cheong">“We are Delighted”: Cheong</h2>
 The Court announced in October, 2023 that it will take forward the dispute<a href="https://cryptonews.com/news/singapore-court-adjudicate-defiance-capitals-140-million-dispute-with-3ac-liquidators.htm" rel="noopener noreferrer nofollow">, against the will</a> of the 3AC liquidators. The liquidators argued that assets locked at DeFiance Capital must be included in the 3AC bankruptcy estate for distribution to creditors.
Per the hearing last year, the Judge pointed out the importance of evidence related to DeFiance Capital founder’s assets control. Judge Ming also emphasized the location where the DeFiance’s assets were held, and the creation of the Trust in Singapore.
Following the hearing, Cheong <a href="https://twitter.com/Arthur_0x/status/1691400992645087232" rel="noopener noreferrer nofollow">posted in social media</a>, “We are delighted that High Court of Singapore agreed with our position.” He added that, though both 3AC and DeFiance Capital were based out of Singapore, the liquidators insisted that the dispute be resolved in the British Virgin Islands.
“Our position was that all the important witnesses and documents are in Singapore. The dispute ought to be heard by the Singapore Courts to ensure all relevant evidence would be available,” Cheong noted.

DeFiance Capital Wins in Lawsuit Against Defunct Crypto Fund 3AC in Singapore

Table of Contents

Cryptonews.com

Other articles published on Feb 2, 2024

Analyst says global crypto market cap will hit $2T soon: 3 altcoins to watch

The Department of Justice (DOJ) charges three people for stealing over $400 million from FTX exch...

Solana (SOL) Drops Below $100 Due to Market Turbulence

Zipmex served 15-day ultimatum to comply with Thai regulations

Hedge Fund Veteran Predicts $170k BTC By 2025; MATIC Holders Jump Ship To Exchange Game Changer P...

Solana memeverse hit by correction, Will SOL react to this?

Join our free newsletter for daily crypto updates!