Arthur Cheong, founder of DeFi and Web3 gaming-focused venture capital firm DeFiance Capital, says his firm is “not finished” after a week of stress in the crypto market.

We are not done and we are actively working to resolve the situation.

My and our team’s behavior and actions are consistent and will not change.

– Arthur (@Arthur_0x) 17 June 2022

“We are not done and we are actually actively working to resolve the situation. My and the team’s behavior is consistent and that will not change,” he wrote.

On June 13, crypto lending platform Celsius suspended withdrawals, swaps and transfers between accounts “due to extreme market conditions”. But analysts have suggested that the real reason for what happened was a “liquidity crisis” as the company was unable to pay customers.

Against this background, the bitcoin price dropped below $23,000 and its market cap dropped below $1 trillion. However, experts attributed this to maro-economic conditions.

Georgetown University law professor Adam Levitin suggested that Celsius’ bankruptcy was most likely inevitable. The media reported that large investors of the platform refused to raise additional funds.

On June 17, crypto-financial service provider Babel Finance announced that it is suspending payments and withdrawals from its own products due to lack of liquidity.

There were also reports of solvency issues with Three Arrows Capital (3AC), one of the industry’s leading hedge funds and holding stakes in many projects. The company’s co-founder, Su Zhu, said the issues have been resolved.

However, Danny Yuan, head of trading at 8 Blocks Capital, accused the company of using client funds to cover margin calls.

According to The Block, 3AC helped create DeFiance Capital, and the latter acts as the “sub-fund and equity class” of the company.

On June 15, Cheong tweeted a crying emoji to which editor Frank Chaparro replied:

“You will get over it.”

– Arthur (@Arthur_0x) 15 June 2022

one of the users approvedThat 3AC has incubated the venture company and owns or fully owns a stake in it.

Recall that the BlockFi crypto lending platform has liquidated at least some of its 3AC positions, according to the Financial Times. The firm’s CEO, Zack Prince, said they “make the best business decision for a client who is unable to meet their overcollateralized margin loan obligations.”

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