Venture capital firm DeFiance Capital has declared its operational independence from the bankrupt hedge fund Three Arrows Capital (3AC). In the past, it was positioned as its “sub-fund”.

The document says Arthur Cheong, founder of DeFiance Capital, registered a “completely independent” firm from Three Arrows Capital in 2020. A similar description is also available on the company’s website.

“Arthur was never associated with or involved in the management of 3AC and/or its affiliates. “He had no access to the hedge fund’s financial statements and documents and became aware of its insolvency issues in mid-June 2022, when the news broke through the media.” – explained in the message.

DeFiance Capital claims it is 3AC’s counterparty and that its liquidation affected the business, causing losses.

“Arthur Cheong intends to take all necessary steps to protect, preserve and recover all assets owned and held in the context of DeFiance Capital’s business.“, – confirmed in the document.

A similar position was previously taken by TPS Capital, which is positioned on LinedIn as the OTC division of Three Arrows Capital.

Recall that in mid-June, Cheong assured investors that he would continue to operate against the backdrop of 3AC issues.

According to media reports, the liquidators of Three Arrows Capital are trying to investigate and bail out the Singaporean assets of the bankrupt cryptocurrency hedge fund.

In early July, 3AC filed for bankruptcy in New York court.

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