The liquidators of the former crypto fund Three Arrows Capital (3AC) plan to sell the company’s NFTs as part of their turnaround efforts.
In a notice published Wednesday, Teneo, the New York-based company responsible for overseeing the liquidation of 3AC, said it would put the bankrupt company’s NFTs up for sale after March 23 in a bid to recoup some of the $3.5 billion it won. it owes to creditors.
It should be noted that the process will not include the fund Starry Night Capitala collection of assets built up by the pseudonymous collector Vincent Van Dough.
Launched in August 2021, the project was supposed to be a new fund to bring together the best collection of NFTs in the world. After announcing the sale of the NFTs, the liquidators signaled that the collection would be excluded from the sale.
Although the note does not specify which NFTs are for sale, Tom Wan, research analyst at 21Shares parent company of 21.co said it could be very well-known NFTs like CryptoPunks as well as a Bored Ape and a few Mutant Apes.
According to the data compiled by Dune Analytics, which tracks 3AC’s NFTs held by the liquidator, the collection is worth $21 million. Furthermore, the NFTs still held by 3AC itself appear to be worth $2.4 million.
In July last year, 3AC filed for bankruptcy, saying its business had “collapsed following extreme fluctuations in the crypto market”. The crypto lender’s losses followed the collapse of the TerraUSD stablecoin in May 2022.
In August 2022, the fund’s liquidators obtained permission from a Singaporean court to access key information about the company’s assets. It is estimated that Three Arrows owes its creditors more than $2.8 billion in unsecured debt.
During this time, Su-Zhu And Kyle Davies the two founders of now-bankrupt crypto hedge fund Three Arrows Capital, have launched a new platform for trading crypto-related bankruptcy claims.