DeFiance Capital stated that none of its assets under management were raised by the bankrupt crypto hedge fund, its founders, or any of its affiliates. The company said it had been “materially affected” and “prejudiced” by the recent turn of events.
DeFiance Capital also said Cheong created the firm “entirely separate” from Three Arrows in 2020, eight years after the hedge fund was founded by Kyle Davies and Zhu Su.
Earlier reports emerged that the web3-focused venture capital firm was incubated by Three Arrows and that the two firms had jointly co-invested in several deals, including stakes in dYdX as well as Solana-based smart contract specialist Orca.