Three Arrows Capital’s coveted NFTs are in the sights of the liquidator of the bankrupt crypto hedge fund in an effort to raise funds to streamline the liquidation process.
Liquidator to sell crypto hedge fund 3AC’s NFTs
In a notice posted on Wednesday, the liquidator, Teneo, stated that the sale of the bankrupt firm’s NFTs would start after March 23 to pay back the $3.5 billion in debt it owes to creditors.
The notification did not specify which NFTs would be up for sale. However, Tom Wan, a research analyst at 21Shares’ parent firm 21. co speculated that they would include well-known NFTs like CryptoPunks, Bored Apes, and a few other Mutant Apes.
Notably, the announcement stated that the non-fungible tokens in the Three Arrows Starry Night Portfolio of digital collectibles would not be sold. It explained that since they are the subject of a lawsuit in the Eastern Caribbean Supreme Court in the British Virgin Islands, they won’t be liquidated with the rest of the collections.
What is 3AC’s Starry Night Portfolio?
In 2021, when NFTs saw a sharp increase in value, Kyle Davies and Su Zhu, the co-founders of Three Arrows Capital, launched The Starry Night Portfolio. According to The Block, the portfolio’s fund, Starry Night Capital, raised an initial $100 million goal and successfully amassed NFTs from collections like Rare Pepe, Fidenza, and CrypToadz as pieces by NFT artist XCOPY.
In October, Teneo transferred roughly 300 Starry Night Portfolio NFTs, totaling about 625 Ether {$1.03 million}, to a Gnosis Safe that needs multiple signatures to transfer the assets. As such, these assets will stay safe from the liquidation process for now. However, only time will tell what will happen later on.
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