Three Arrows Capital (3AC) Was Sued By The “Child” That It Nurtured
DeFiance Capital, the project cherished by Three Arrows Capital since its inception in 2020, is intending to sue this insolvent crypto hedge fund.
DeFiance Capital is currently considering legal action against Three Arrows Capital
DeFiance Capital and Three Arrows Capital are said to have signed a number of co-investment agreements with each other including shares of dYdX and Orca (the DEX operating on the Solana platform) and many other projects.
A number of counterparties of Three Arrows are now facing the prospect of losing millions of dollars stuck in bankruptcy limbo. The firm, which is now undergoing a bankruptcy and broad restructuring, increased its assets and delivered, by and large, above-average performance to its limited-partners.
Details of the exact relationship between Three Arrows and DeFiance, which is run by founder Arthur Cheong, are unclear. But it appears that Three Arrows played a big role in the launch of DeFiance in September 2020, providing back- and middle-office support, as well as access to deal flow and consultations on hiring.
It is not clear reasion DeFiance’s action (possibly because of some debt problems in the partnership between the two parties).
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