Popular crypto venture capital firm DeFiance Capital (DC) clarifies its relationship with the collapsed Three Arrows Capital (3AC) via its official Twitter account.
Kyle Livingston Davies and Su Zhu launched Three Arrows Capital in 2012, but in 2020, Arthur Cheong founded DeFiance Capital as an “entirely separate and independent crypto-focused investment fund.”
None of DC’s assets are managed by 3AC, its founders, or any of its affiliates, notes the revelation by the venture capital firm.
Arthur developed and managed the DC business, assets, and investments, and he has never been a director of 3AC or any of its subsidiaries.
In addition to that Arthur is not, and has never been, involved in the management of 3AC. Cheong also didn’t have access and no visibility into 3AC’s financial statements or financial condition.
Arthur only learned about 3AC’s solvency issues around the time the news broke in mid-June 2022.
The liquidation of 3AC has had a major impact on DC as it had on many other counterparties who had relations with the now bankrupt hedge fund.
According to certain sources, DeFiance is currently thinking of a lawsuit against Three Arrows Capital. The precise nature of DeFiance’s business relationship with 3AC is unknown, however, the former claims to be a counterparty to the latter.
Similar to DC, last week Tai Ping Shan (TPS) issued a clarification stating that it is an independent entity from Three Arrows Capital with separate management and operations.
Also Read: Three Arrows Capital Holds First Meeting For Creditors On July 18
The statement notes “Arthur Cheong is committed to taking all necessary steps to protect, preserve and recover all assets which are and were owned in the context of DC’s business.”
