3AC’s Liquidation of Millions-Worth of NFTs
Teneo, the liquidator of the now-defunct crypto hedge fund Three Arrows Capital (3AC), has announced plans to sell off its expansive collection of non-fungible tokens (NFTs), estimated to be worth millions of dollars. The NFTs are said to include digital artworks, music albums, and various collectibles from various creators.
3AC, the Cryptocurrency Hedge Fund based in Singapore, is Set to Auction Off $22 Million Worth of NFTs. Last July, 3AC Announced Bankruptcy and Estimated Its Assets at Around $1 Billion – Including NFTs Worth About $22 Million. Teneo Now Plans to Sell the Seized NFTs Within 28 Days.
According to its now-defunct Twitter account, Starry Night Capital was a fund established by 3AC in partnership with renowned NFT collector Vincent Van Dough in August 2021 to assemble “the world’s finest collection of CryptoArt.”
3AC listed NFTs
Teneo indicated that the NFTs listed were unrelated to Starry Night Capital’s NFT portfolio. In October, the NFTs in that collection were transferred to a Gnosis Safe and are “now the subject of an application before the Eastern Caribbean Supreme Court in the High Court of Justice in the British Virgin Islands.”
The notice also stated that the NFTs are expected to be sold as a single lot, with all proceeds from the sale being used to satisfy the claims of creditors of 3AC. The liquidator has set a reserve price for the NFTs but did not disclose an exact figure.
It is believed that the sale of the NFTs could provide a much-needed boost to 3AC’s creditors, who have yet to receive any payments from the fund. It remains to be seen how successful the auction will be and whether it will be able to generate enough funds for 3AC’s creditors.
This event has attracted considerable attention within the industry due to its potential impact on the future development of NFTs and how established institutions view these new asset classes. If successful at auction, investors could see a large return on their investments as these unique digital items offer provable ownership and scarcity.
