Over 300 NFTs From Three Arrows Capital’s NFT Fund To Be Liquidated After Move

Over 300 NFTs From Three Arrows Capital’s NFT Fund To Be Liquidated After Move.

Hundreds of non-fungible tokens were purchased in 2021 by the NFT fund of the bankrupt cryptocurrency hedge company Three Arrows Capital (3AC). After suffering losses as a result of the demise of the Terra ecosystem and the accompanying crypto winter, 3AC filed for bankruptcy earlier this year.

The liquidator in charge of the company’s bankruptcy proceedings, Teneo, has verified that it has taken control of the pricey Ethereum-based NFTs that crypto hedge fund Three Arrows Capital shifted to a new wallet this week. The new wallet has been created for the hundreds of non-fungible tokens (NFTs) that is related to Starry Night Capital.

Three Arrows Capital’s NFTs Were Moved To Gnosis Safe Address

According to Teneo, 3AC’s liquidator, “all Starry Night Capital NFTs, of which VVD is aware, have been accounted for and are in our custody or are being transferred to us,” in a statement that was cited by Bloomberg and crypto media. The company said it plans to engage with Vincent Van Dough to manage their disposal and that it wants to sell them.

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The crypto analytics company Nansen said on Twitter that NFTs from Starry Night Capital’s premium collection, which includes Cryptopunks among other priceless treasures, are being transferred to a new wallet. Over 300 tokens out of over 400 NFTs have been moved to a multi-signature Ethereum wallet called Gnosis Safe. Initially, they planned to fund about $100 million to buy tokens from well-known NFT collections and well-known artists.

3AC NFT Collection To Be Liquidated

Teneo claimed that the collection action was necessary as part of the liquidator’s responsibility to locate assets and increase recoveries on behalf of all creditors. According to a Bloomberg report, the collection of paintings from the Starry Night Capital is worth about $35 million in total. It is a very small portion of the $2.8 billion in debt owed by the 3AC to its creditors.

The collection right now, estimated to be worth roughly $846,000 in ETH by the crypto analytics company Nansen, however many of the individual estimates are significantly lower than the original purchase price.

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Su Zhu, Kyle Davies, and anonymous NFT collector Vincent Van Dough, co-founders of 3AC, established Starry Night Capital in 2021. This nonfungible token-focused firm initially planned to invest only in “the most coveted” NFTs.

Three Arrows Capital, formerly a prominent hedge fund in the cryptocurrency industry, went bankrupt in May as a result of Terra’s UST and LUNA ecosystem’s demise, in which the firm had a sizable investment. The Grayscale Bitcoin Trust and other recent failed bets, such as those on staked Ethereum, were mentioned by Three Arrows Capital’s founders Su Zhu and Kyle Davies as contributing factors.

Three Arrows stated in its June Chapter 15 bankruptcy filing that company owed $3.5 billion to creditors as a result of its demise. The high court of Singapore authorized a more thorough investigation into the firm’s demise in August.

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