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3AC Liquidators to Sell Company’s NFTs to Recoup Funds Amid Bankruptcy

February 24, 2023
3 Min Read
Auction

Teneo Restructuring, the liquidators hired to oversee the bankruptcy proceedings of the troubled crypto hedge fund Three Arrows Capital (3AC), plans to sell certain non-fungible tokens (NFTs) belonging to the company. 

3AC troubles started in June 2022 following the Terra (LUNA) fiasco, which wiped out millions of dollars from the industry. The Su Zhu and Kyle Davies-led asset management firm was hit with a monster leverage crisis and failed to honor its customer’s withdrawal request, resulting in bankruptcy. 

As part of its ongoing restructuring plan, liquidators said in a notice released on February 22, 2023, that the group intends to take steps to commence the distribution of the assets solely owned by 3AC. 

Sales to Commence 28 Days After Notice 

Joint liquidator Christopher Farmer hinted that the goal of the sale was to generate funds for the liquidation. According to the announcement, the sales of the NFTs will commence 28 days from the day of the notice, starting in March.

“The purpose of the sale is to realize the value of the NFTs for the purposes of the liquidation. The necessary steps are expected to commence within 28 days of this notice and, in any event, after March 23, 2023,” reads the notice,” reads the statement. 

The liquidators also clarified that the sale would not include the Starry Night Portfolio, a group of digital artworks and collectibles currently subject to an application before the Eastern Caribbean Supreme Court of the High Court of Justice in the British Virgin Islands. 

The NFT collection became part of 3AC bankruptcy proceedings in October 2022 when 300 NFTs from the company’s subsidiary Starry Night Capital, launched in 2021 to collect the world’s finest NFTs, were transferred as part of its restructuring plan.

 Anonymous NFT collector Vincent Van Dough collected and organized the digital artwork.

Potential NFTs to be Sold 

While the liquidators only disclosed the NFTs, which would not be part of the sales, blockchain analyst Tom Wan revealed on Twitter a list of possible NFTs which could be considered for the sales. 

According to the tweet, some of the potential NFTS may include high-profile digital collections such as CryptoPunks, BAYC, MAYC, Otherdeeds, and PEGZ.