DeFiance Capital, a Web3 venture capital firm, is considering legal action against Three Arrows Capital, which could come in the form of arbitration, litigation or an amendment to bankruptcy proceedings that would require Three Arrows Capital to repay as a creditor, according to people familiar with the matter.
The two companies have signed a number of co-investment agreements, including dYdX and Solana decentralized exchange Orca, and sources say it appears that Three Arrows Capital played a major role in the launch of DeFiance in September 2020, providing back and middle offices Support, as well as access to transaction process and recruitment advice, DeFiance still manages more than $100 million in assets as of now.