I would like to share my key takeaways from this morning's liquidator meeting. A 2 hour meeting distilled into a short and sweet tweet thread 🧵
The liquidator asked that the contents of the meeting not be shared with the public, but this is of paramount public interest and the parties that have been affected have a responsibility to be open and transparent with their users, shareholders, lenders etc.
Having said that, going forward, I will be sensitive with what I share regarding fellow creditors, but I have no interest in holding back when it comes to Kyle, Su, and 3AC.
The meeting voted NOT to seek alternative liquidators so Teneo will remain the liquidators. From the call, they seemed to be very knowledgable, experienced, and committed to securing the best outcome for all creditors
The meeting voted to elect a creditor committee that will comprise Digital Currency Group, Voyager Digital, Blockchain Access UK Ltd, Matrix Port Technologies, and CoinList Lend. These 5 parties represent almost 80% of the current level of claims.
The creditor committee's role will be to work with the liquidators on how best to realize value for the assets. Some of the assets are illiquid and difficult to value, but there are no plans to fire sale any assets
In a bankruptcy of this scale, it is normal and expected that the founders would be offering their full cooperation but this has not happened. As such, the liquidators have had to hire investigators and security teams around the world to help piece this jigsaw puzzle together
It was reported at the end of last year that 3AC had approximately $6bn in assets and $3bn in liabilities. It is too early to know how much still remains and the liquidator is in the process of securing accounts from fund administrators, counterparties, banks, etc
The 3AC assets comprise bank account balances, direct crypto holdings, underlying equity in projects, and NFTs. I was surprised to hear that 3AC no longer owns any BTC or Eth.
The liquidator implied that there may have been wrongdoing while 3AC was in a so-called Zone of Insolvency, a period of time when there is a risk that a company may not be able to pay its debts when they fall due. Transfers that Kyle and Su made at that time may be clawed back
Su Zhu is claiming $5m, ThreeAC Limited is claiming $25m, and Chen Kaili Kelly (Kyle's wife) is claiming $66m. Interestingly, these claims may be considered as quasi-equity and be subordinated to creditors resulting in them rightfully getting 0
Total claims right now are $2.8bn. Many have not made any claims yet, or quantified the amount of their claims for confidentiality reasons. Expect this figure to rise substantially as the deadline to make a claim is right up to the day before distributions are to be made
If anyone has any information regarding funds that Kyle and Su have squirreled away, please help out and send information to 3ACLiquidation@teneo.com
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