- The 300 NFTs owned by Starry Night Capital will be liquidated
- The NFTs have been confirmed to be owned by Three Arrows Capital
- The $35 million collection was moved to a Gnosis safe this week for extra security
The firm in charge of handling the bankruptcy of Three Arrows Capital has confirmed that the collection of 300 NFTs belonging to Starry Night Capital which it moved on Tuesday will be liquidated. Teneo confirmed to Cointelegraph yesterday that the 300-strong collection, which includes Pudgy Penguins, Meridian and CryptoToadz, are property of Three Arrows and will be sold to help fund creditors, although the value represents just a drop in the ocean.
$35 Million NFT Haul Belongs to Three Arrows Capital
Blockchain data firm Nansen spotted the move earlier this week, which saw 300 NFTs move from a wallet into a Gnosis safe, a platform which champions self-custody of stored assets. It was already known that Starry Night Capital had links to Three Arrows Capital, but until today’s confirmation from Teneo it could not be confirmed that the NFTs were owned by the bankrupt crypto fund.
Teneo told Cointelegraph that it has worked with an NFT collector to ensure that the NFTs are safely stored and will be used to obtain maximum financial returns:
We would like to make clear that VVD [pseudonymous NFT collector Vincent Van Dough] has cooperated with the JLs [Joint Liquidators] in an effort to protect the value of these assets for the benefit of all relevant stakeholders and has sought to ensure that no Starry Night Portfolio assets would be disposed of improperly, or without sanction of the BVI Court if required.
Teneo added that VVD will also assist with the eventual sale of the NFTs and will likely oversee the assets’ disposal with the firm, the value of which Bloomberg puts at $35 million. However, this is just a fraction of the $2.8 billion that Three Arrows owes to its creditors.