The liquidators of Three Arrows Capital (3AC), the failed crypto hedge fund, will soon sell the company’s expensive NFT collection.
According to a Feb. 22 filing by Teneo, “the Joint Liquidators intend to take steps to commence the sale of certain nonfungible tokens (NFTs) in their possession and control and which are beneficially owned and belonging to the company.”
Sale to Commence in March
Joint Liquidator Christopher Farmer explained that the goal of the sale is to realize the value of the NFTs to pay back creditors in 3AC’s bankruptcy case.
3AC filed for liquidation in the British Virgin Islands last year as it faced pressure from multiple creditors. Soon after, US agencies got behind the collapse. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) started a probe.
Teneo Restructuring was hired in June 2022 to oversee the bankruptcy process. Before its failure, 3AC acquired numerous illiquid assets in the form of venture capital investments in cryptocurrency startups and businesses. The assets needed to be valued, and Teneo was brought in to create a website with directions for creditors.
3AC Co-Founders Under Fire
Su Zhu and Kyle Davies, who were former classmates, co-founded the now-bankrupt 3AC hedge fund. This year, the pair launched a new project called GTX.
Davies also recently came under fire for disobeying liquidators’ orders and failing to cooperate.
Meanwhile, numerous digital art assets owned by a non-fungible token (NFT) fund by the co-founders underwent prominent transfers in October 2022. According to previous reports by BeInCrypto, NFTs from the Starry Night Capital fund wound up on the self-custody platform Gnosis Safe.
The notice highlights that this is a separate sale. It stated, “For the avoidance of doubt, the Sale does not relate to the list of NFTs informally referred to as the ‘Starry Night Portfolio’ which is presently subject to an application before the Eastern Caribbean Supreme Court in the High Court of Justice in the British Virgin Islands (the “Starry Night Application”).”
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