Excerpt from the latest report sent to shareholder:
The realisation of value out of the bulk of the Kraken portfolio proceeds at
glacial pace. That is, of course, extracting something back from the BS&T
assets.
The most likely course of action that I have been advised of is pursuing
Trendon via the SEC. Although providing an affidavit and details to the US
government is not my preferred choice, and there is no guarantee that it will
help, it becomes part of the process. Additionally, I expect it to remain a
slow process largely in someone else’s hands.
Because of the slowness in extracting and returning funds, and being mindful
of several outstanding requests, I have done some work on getting additional
liquidity. Again, this has not been particularly easy with assets locked up in
a non-functioning exchange and a variety of other places.
What I have managed to organise is an option for anyone that wishes to exit
during November at 50% of the face value of your Kraken investment. The
alternative is to wait and see how the SEC process pans out.
This is not a development that I anticipated, and makes use of an investment
that I have managed to “cash in” after holding for six months.
He then sent 50%, not leaving an option to stay.
This was not really what I expected from his offer. Anyone could have bought those debts themselves directly (and would have known better than to buy those specific things.)
Since Patrick Harnett was managing the PPT that he insured and paid for personally, that would mean he bought himself out of this debt. It seems those PPT represent 50% of the fund and he paid back 50%. His charts show half PPT after the default and he started to pay insurance. Paying anything less than 50% would have been quite...
In any case, I'll inquire further if that's the reason he defaulted paying back 50% and if the remaining is due to payb.tc debt and mining assets which might be locked or not with GLBSE (I do not currently know where or what those mining assets are.)
Hopefully the mining assets are in GLBSE and locked and we can recover another 25% if GLBSE ever decide to transmit data.
He did break his promise to cover any loss personally. This is already being discussed on this thread about the Kraken Fund default and another default owed to MPEx:
https://bitcointalk.org/index.php?topic=121915.240
