DeFiance Capital (DC), a Web3 VC firm, has distanced itself from insolvent hedge fund Three Arrows Capital (3AC) through a statement on Twitter.
DeFiance Capital founder Arthur Cheong / Photo credit: BQ Prime
DeFiance, created eight years after the troubled entity, clarified that it was entirely separate from 3AC. The VC explained that DeFiance founder Arthur Cheong was never director nor involved in the management of 3AC, saying that he was only made aware of the firm’s problems when news publicly broke in June.
“None of DC’s assets under management were raised from 3AC, its founders, or any of its affiliates. Arthur grew, developed, and managed the DC business, assets, and investments since that time,” the post read.
DeFiance said its business has been “materially affected and indeed prejudiced” due to the 3AC troubles, possibly hinting at pursuing legal action. The Web3 VC said Cheong was “committed to taking all necessary steps to protect, preserve, and recover” all of DC’s assets.
DeFiance was incubated by 3AC in 2020, and the two companies reportedly co-signed several investment deals.
The hedge fund’s insolvency has dealt a blow to its affiliates, with crypto broker Voyager filing for bankruptcy after 3AC failed to repay loans worth around US$653 million.
See also: A who’s who of projects facing frostbite in the crypto winter
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