Liquidators to Sell 3AC NFTs to Raise Funds

Reading Time: 2 minutes
  • The Three Arrows Capital liquidator is now going after its NFT stash
  • The NFT liquidation will not involve collectibles held by 3AC’s subsidiary Starry Night Capital
  • There are speculations that 3AC’s NFT collection includes CryptoPunks, Otherdeeds and Bored Apes

Bankrupt hedge fund Three Arrows Capital (3AC) is set to lose its NFT stash after liquidators revealed plans to sell collectibles to realize value for liquidation purposes. However, the targeted collectibles don’t include those held by the firm’s subsidiary Starry Night Capital which owns assorted NFTs dubbed Starry Night. Although the liquidator didn’t expose the NFTs directly held by 3AC, there are speculations that the collection involves popular collectibles from the CryptoPunks, Otherdeeds and Bored Ape NFT projects.

Starry Night Collection to Stay

3AC’s liquidator Teneo will conduct the NFT sale towards the end of March or 28 days from the day of the notice which is dated February 22. According to the liquidator, the sale won’t involve the Starry Night collection which is home to Rare Pepe, Art Blocks and some CryptoPunks. Teneo cited an ongoing court case filed in the British Virgin Islands as the main reason why they are yet to liquidate the NFTs, despite being in control.

Despite not mentioning the contents of the 3AC NFT collection, some in the crypto community think that it features high-value collectibles from the Otherdeeds, Bored Ape, Mutant Ape, Autoglphys and the CryptoPunk collections.

3AC Founders Moving On

Since filing for bankruptcy in June 2022, 3AC creditors haven’t been happy with how the firm has conducted itself. Last month, for example, the firm’s co-founder Su Zhu found himself on the receiving end after proposing that Terra’s collapse was masterminded by FTX and the Digital Currency Group, with community members urging him to first deal with his mess. The community was also unhappy with 3AC founders launching a crypto exchange.

With $3.5 billion owed to creditors, liquidating 3AC NFTs may not fetch much considering that the NFT market is under a bearish spell despite the recent seemingly short-lived recovery caused by OpenSea and Blur’s rivalry.