DeFiance Capital Denied Connection With 3AC: Report

DeFiance Capital denied the connections with Three Arrows Capital in the wake of the company’s liquidations that sent shockwaves through the entire industry so let’s read more today in our latest cryptocurrency news.

DeFiance Capital denied and stated that none of the assets under management were realized by the bankrupt hedge fund and the founders or any other its affiliates. The company said that it was materially affected and prejudiced by the turn of events. In the recent statements, the venture capital fund elucidate that the founder Arthur Cheong had no access to no visibility on the 3AC financial statement and the financail condition. DeFiance Capital said that Cheong created the company entirely separate from Three Arrows Capital in 2020 about eight years after the company was founded by Zhu Su and Kyle Davies.

Earlier reports emerged that the web3-focused venture capital company was incubated by 3aC and said that the two companies jointly co-invested in a few deals like stakes in dyDx and Solana-based smart contract specialists like ORca. Defiance Capital’s website read that it operates a sub-fund and shares class of Three Arrows Capital. Cheong posted:

“Some friendships are truly priceless and a blessing. Some are not.”

Rumors started expanding about the Defiance possibility to face insolvency but the founder said that the company was not done and that it was working to find a solution without revealing more details. Following Three Arrows Capital’s bankruptcy proceedings as their relationship turned sour. The developers of dyDx also clarified that they were not exposed to the 3ac contagion.

As recently reported, The founders of the hedge fund Three Arrows Capital are missing and when the liquidators visited the office in Singapore they found a locked door. The US Bankruptcy Court in New York’s Southern District, Russel Crumpler and Christopher Farmer that serve as the liquidators, reproted that the 3AC office is abandoned and the whereabouts of Kyle Davies and Zhu Shu are uknown.

While the layer in Singapore that represents the founders recently approached the representatives, the Founders haven’t started to cooperate with the Foreign Representatives in a meaningful manner as the filings read. The filing also said there is an increased risk that Davies and Su might attempt to transfer 3AC assets to new wallets or accounts because a huge chunk of assets and cash are readily transferable.