Singapore High Court approves DeFiance Capital's lawsuit against 3AC

Singapore’s High Court has dismissed bankrupt cryptocurrency hedge fund Three Arrows Capital’s (3AC) application to dismiss a lawsuit filed in April by Cheong Jun Yoong, also known as Arthur Cheong. Cheong is the founder of Web3 investment firm DeFiance Capital. Cheong claimed in the lawsuit filed in April 2023 that investors in DeFiance Capital are the ultimate beneficial owners of the trust assets held by 3AC and that 3AC’s estate should not use the funds to satisfy creditor claims against it. The plaintiffs reached an agreement with 3AC founders Su Zhu and Kyle Davies to launch a "separate and independent fund, which will be owned and controlled by the plaintiffs on the 3AC Group platform." The fund will have access to 3AC's resources, such as its backend infrastructure , fund administrators and auditors. The fund, eventually named DeFiance Capital, had separate accounts and wallets in Cheong’s name. It paid Zhu and Davies 25% of the costs incurred. In May 2022, the DeFiance Capital account contained $22.3 million in USDT and $93.8 million in other cryptocurrencies and fiat currencies. 3AC created sub-accounts for DeFiance Capital within its accounts at FTX and Binance, as well as a separate workspace on the platform of 3AC’s custody provider, Fireblocks.