The crypto finance world has witnessed countless disputes, but few have compared to that of the ongoing feud between DeFiance Capital and Three Arrows Capital Limited (3AC). In particular, this dispute highlights the intricate interplay between traditional financial frameworks and the evolving dynamics of digital assets.
In a tweet posted earlier today, the CEO of DeFiance Capital shed new light on their ongoing legal battle with 3AC, suggesting that the tide is turning.
Statement and Update on Three Arrows Capital Limited (3AC) Dispute
We are very happy to share with the public a positive development on our end.
We are known to have been embroiled in a dispute over the past year with the 3AC estate, who claim that the assets…
— Arthur (@Arthur_0x) August 15, 2023
DeFiance Capital: A Year-long Struggle
Nearly a year ago, the disagreement between DeFiance Capital and the estate of 3AC took center stage when the estate alleged that DeFiance Capital’s assets should be used to service 3AC’s debts.
DeFiance refuted this claim, claiming they had full authority and rightful ownership of their assets. This position, they argue, is consistent with common industry perceptions and is supported by available evidence.
The debate took a geographic turn as the liquidators pushed for a settlement of the British Virgin Islands (BVI) dispute. DeFiance Capital, which was managed out of Singapore alongside 3AC, found this choice of jurisdiction puzzling.
They argued that the primary evidence and witnesses were located in Singapore, making it a more appropriate venue for the hearing. Their persistence paid off last week when Singapore’s Supreme Court agreed to their jurisdictional preference, subtly undermining the liquidators’ earlier narrative that DeFiance’s position was groundless.
The road ahead: searching for effective solutions
Despite these disagreements, DeFiance has shown a willingness to work together. They have provided extensive assistance to 3AC’s liquidators in understanding DeFiance’s position and have even offered assistance in identifying 3AC’s assets.
The intent, as expressed by DeFiance’s CEO & CIO, was to minimize the resources spent on determining the hearing location and instead focus on the core issues.
However, the journey was not without problems. The liquidators faced setbacks in the US as they tried to hold Kyle Davies, co-founder of Three Arrows Capital, accountable in a US court. This attempt was thwarted when it came to light that Davies was no longer a US citizen, a mistake of information that resulted in unnecessary legal fees.
Blossom Hing, representing DeFiance, stressed the importance of the recent jurisdictional decision. She emphasized that the Singapore International Commercial Court could deal with issues related to BVI law and expressed her optimism for an efficient solution that would benefit all parties.
Hing noted:
We welcome the Singapore Court’s decision as it ensures that key evidence located in Singapore is available to resolve the dispute in a fair and efficient manner. Coupled with the fact that the Singapore International Commercial Court can hear arguments and decide on BVI legal issues, we believe that having the dispute heard in Singapore will result in significant cost and time savings for all parties.
Featured image of Unsplash, chart from TradingView