A dispute between DeFiance Capital and Teneo, the liquidators of failed hedge fund 3AC, will be heard in Singapore. The case is separately running in the British Virgin Islands.
Teneo claims that the assets under DeFiance Capital’s management should be accounted as 3AC’s estate thus it should be distributed to creditors. Meanwhile DeFiance Capital claims that its funds should be treated separately and returned to original investors.
DeFiance Capital founder Arthur Cheong also claims that the fund was launched in 2020 within 3AC’s corporate structure with a different share class.
DeFiance had its own office and independent decision making team which paid a share of its management fee to 3AC as per the agreement.
The dispute is over assets with a total valuation of $115 million which is currently held by DeFiance Capital. These assets include cryptocurrencies, NFTs and several SAFE/SAFT contracts which all are signed by 3AC.
Judge Chua Lee Ming decided that the case should be heard in Singapore as DeFiance Capital and the funds are in Singapore whereas Teneo states that it should take place in the British Virgin Islands where the fund’s structure is based.
Teneo is an independent firm that is overseeing and managing the liquidation of insolvent crypto hedge fund Three Arrows Capital (3AC) appointed by British Virgin Islands Court. So far the company has sold millions of dollars of 3AC’s estate including several blue chip NFTs.
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