A five-member committee of creditors of bankrupt hedge fund Three Arrows Capital (3AC) has been formed today, according to three sources with knowledge of the matter.
The committee is comprised of Digital Currency Group (DCG), Voyager, CoinList, Blockchain.com and Matrixport, the sources said. Creditors voted based on their voting power (size of their claim) and the five members were ultimately chosen at the first creditors' meeting today held by Teneo.
Teneo, the liquidator of 3AC, declined to comment when reached. A DCG spokesperson confirmed that the company is part of the committee, not its Genesis unit.
Four of the five committee members are mentioned in the 3AC affidavits obtained and reported by The Block earlier today, except Matrixport. One of the sources said Matrixport has also been added to the creditors' list. The Block has learned that Teneo will publish updated affidavits.
A Matrixport spokesperson confirmed that it is part of the committee, saying: "Alongside other creditors of Three Arrows Capital, we have lodged a claim with the court-appointed liquidator to reclaim outstanding debt following a loan default. The outcome of the liquidation process does not impact the solvency of Matrixport and the company continues to operate normally."
3AC had grown into one of the crypto industry's biggest hedge funds before May's collapse of the Terra ecosystem left it facing significant losses. Last month, a court in the British Virgin Islands appointed financial advisory firm Teneo to handle 3AC's liquidation and 3AC filed for Chapter 15 bankruptcy in New York a few days later.
As The Block reported earlier today, collapsed 3AC owes 27 crypto companies $3.5 billion.
The largest creditor on the list is Genesis Asia Pacific Pte Ltd., a unit of the brokerage subsidiary of Digital Currency Group (DCG), which had loaned $2.3 billion to 3AC. Genesis CEO Michael Moro recently said that DCG had taken on some of Genesis' liabilities.
Also included among creditors are 3AC co-founder Zhu Su, who is seeking $5 million, and 3AC co-founder Kyle Davies' wife Kelly Chen, who is seeking $65 million.
The Block has reached out to Voyager and Blockchain.com for comment and will update this story should we hear back. CoinList declined to comment.
After the publication of this story, Teneo confirmed on the website it has created for 3AC's liquidation that Voyager Digital, Digital Currency Group, CoinList. Blockchain.com and Matrixport are members of the creditors' committee.
"Under BVI statute, a creditors' committee must consist of between three and five members," Teneo said in an updated Q&A document.
"The creditors' committee works closely with the JLs [joint liquidators] to support the interests of all creditors through each stage of the insolvency. The creditors committee consults with the JLs. To the best of the JLs' knowledge, no one on the creditors' committee is related to or connected to the founders / principals of Three Arrows Capital," it added.
Editor's note: This report has been updated to include comments from DCG and Matrixport and official confirmation from Teneo.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.