NFTs belonging to bankrupt hedge fund to be sold by liquidators

Terrill Dicki  Feb 25, 2023 17:20  UTC 09:20

2 Min Read

According to a recent statement, the nonfungible tokens (NFTs) that belonged to the failed hedge firm Three Arrows Capital (3AC) would be liquidated by its liquidators, Teneo.

Christopher Farmer, a joint liquidator for 3AC, made the announcement in a notice dated February 22 that the liquidators aim to start selling NFTs that are associated with the company. The value of the NFTs would be "realized for the purposes of the liquidation," according to the notice, which stressed the fact that the sale would be conducted. The notification will be effective 28 days from the beginning of the sales, as stated in the statement.

Within the release, the liquidators made it clear that they would not be included the list of NFTs that has been unofficially called the "Starry Night Portfolio." As part of the bankruptcy proceedings involving 3AC, on October 5, 2022, 300 NFTs belonging to 3AC subsidiary Starry Night Capital were transferred. The liquidators brought to everyone's attention the fact that an application regarding these NFTs is presently being considered by the supreme court in the British Virgin Islands.

Although the announcement did not specify which NFTs would be sold, analyst Tom Wan pointed out on Twitter which NFTs the liquidators may or may not sell in the future. According to Wan, the NFTs have the potential to incorporate certain items of a high profile. In the middle of the process through which 3AC was filing for bankruptcy, he tweeted that community members had constantly voiced their discontent on social media over the activities of the 3AC staff. On January 3, 2019, the creator of 3AC, Su Zhu, was called out on Twitter for his accusation that the Digital Currency Group (DCG) was planning to attack Terra in conjunction with the FTX exchange. Zhu's attempts to call out DCG and FTX failed, as community members urged him to concentrate on his own wrongdoing rather than the actions of the other two companies.

On February 10, members of the cryptocurrency community attacked the newly created exchange that was supported by 3AC and Coinflex. The launch caused outrage among the community members, and many of them vowed that they would never participate in the exchange again and would harass anyone who did.

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