Crypto News – Opposite to the intentions of the Three Arrows Capital estate’s liquidators, DeFiance Capital and Teneo will have their $140 million legal dispute heard in Singapore.
Dispute Between DeFiance Capital and Teneo Grows, $140 Million Lawsuit to be Held in Singapore
The assets that were handled by DeFiance Capital, a fund that was operated separately from 3AC but was part of its organizational structure, are at issue. According to court filings, DeFiance Capital contends that the monies should be handled differently and given back to its own investors, while the liquidators contend that they should be kept as a part of the 3AC estate and distributed to creditors.
The liquidators asserted that any trial should take place in the British Virgin Islands, where the fund structure was based, despite their denial that the matter really needed to be heard at all. They described it as an obvious afterthought. The fund’s investors and DeFiance Capital’s founder, Arthur Cheong, contended that it should be held in Singapore.
Trial Ordered to be Held in Singapore
According to court documents from an August 8 hearing, Singapore Judge Chua Lee Ming concluded the matter should be heard and that Singapore would be the more suitable location.
We are definitely feeling very positive about the decision by the Singapore judge because this has vindicated our position to a very big extent. We are pretty happy that we can finally move to the next stage, which is really about the substance of our disagreement.
Arthur Cheong, DeFiance Capital Founder
Despite the liquidators’ contention that cryptocurrencies don’t exist anywhere in particular, the judge cited two significant arguments, including the fact that the trust was largely established in Singapore and that the cryptocurrency held by DeFiance Capital is stored there. Additionally, he stated that evidence such as how much control Cheong had over the fund raises important issues that ought to be discussed at the trial.
We welcome the decision by the Singapore Court as it will ensure that important evidence located in Singapore would be available for the purposes of resolving the dispute in a just and efficient manner,
Blossom Hing, a lawyer at Drew and Napier, is representing DeFiance Capital
The Dispute is also being Discussed in the BVI
According to court records, the identical dispute is also being discussed in the BVI, but no decision has yet been made there. If it is decided that the case should be tried in the British Virgin Islands, the processes will proceed concurrently and could result in two distinct decisions on the same matter.
Cryptocurrencies and NFTs worth $115 million that are held by DeFiance Capital are included in the contested assets. Additionally, it contains 69 SAFE/SAFT agreements for potential equity or tokens that were executed in 3AC’s name. DeFiance Capital places the figure at closer to $120 million than liquidators, who put it at $141 million. Because such agreements are difficult to value, according to Cheong, their estimations diverge.
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