The $140 million dispute between DeFiance Capital and the asset liquidator Teneo of Three Arrows Capital will be heard in Singapore, against the wishes of the liquidators.
The controversy involves assets managed by DeFiance Capital, a fund independent from 3AC's operations but part of its corporate structure. According to court documents, the liquidators claim these funds should be held and distributed to creditors as part of 3AC's assets, while DeFiance Capital argues that the funds should be treated separately and returned to its own investors.
While the liquidators have denied the case should be heard at all, they have indicated that any trial should take place in the British Virgin Islands, where the fund is domiciled. DeFiance Capital argues that the trial should be held in Singapore since its founder, Arthur Cheong, and the fund's investors are based there.
According to court records from the hearing on August 8th, Singaporean Judge Chua Lee Ming has decided to proceed with the case in Singapore.
DeFiance Capital founder Arthur0x has issued a statement and update regarding the dispute with Three Arrows Capital Limited (3AC). He stated that DeFiance Capital's position is consistent with the industry's broader understanding and all evidence supporting the exclusive, unrestricted control and beneficial ownership of its assets.
Arthur0x mentioned that following last week's hearing, the Singapore High Court agreed with their stance, recognizing Singapore as the more appropriate jurisdiction to hear the dispute. This acknowledgment challenges the liquidator's claim that there was “no legal basis” for the case. Arthur0x expressed the hope that the liquidators would engage in cooperation, focus on resolving substantive issues, rather than spending more time on procedural conflicts.