The High Court of Singapore has turned down Three Arrows Capital’s (3AC) request to dismiss a lawsuit filed against it by DeFiance Capital. The entity aims to separate its assets from 3AW creditors independently of the liquidation process.
The primary argument revolved around the whereabouts of the crypto assets in question. According to the filing, these assets have no physical location and instead exist as records within a network of computers.
Court Rejects 3AC’s Bid to Dismiss DeFiance Capital Lawsuit
In a recent court filing, the judge dismissed Three Arrows Capital’s plea to have the lawsuit filed by Cheong Jun Yoong, the founder of DeFiance Capital, thrown out.
Consequently, the judge mandated that Three Arrows Capital must cover Cheong’s legal fees.
“Accordingly, I dismissed the defendants’ application. I ordered the defendants to pay costs to the claimant fixed at $15,000 plus disbursements to be fixed by me if not agreed.”
3AC Among Several Companies That Collapsed in 2022
In December 2023, BeInCrypto reported that 3AC founder Su Zhu was questioned by lawyers from Teneo, the appointed liquidators.
The queries aimed to uncover details about the fund’s failure and the current location of its assets. The fund collapsed in July 2022, a year where the crypto industry saw several major crypto firms collapse.
Major crypto-asset platforms that have entered bankruptcy since the beginning of 2022. Source: Federal Reserve Bank of Chicago
However, Zhu’s questioning was approved after his arrest on September 29 at the Singapore airport.
According to the report, he was held for four months due to non-cooperation with the winding-up process. However, he is expected to be released this month.
In September 2023, BeInCrypto reported that Zhu was arrested at Changi Airport as he attempted to leave Singapore.
Authorities also granted a similar order against another 3AC co-founder, Kyle Davies, but so far, they have been unable to track him down.