NFTs belonging to failed crypto hedge fund Three Arrows Capital (3AC) are to go up for sale, but will not include a prized selection of its portfolio, the fund’s liquidator has said.
“The Joint Liquidators intend to take steps to commence the sale of certain NFTs,” a new memo reads.
The sale of certain NFTs in their possession will commence within the next month, according to the latest update from liquidators, starting by at least March 23.
“The purpose of the Sale is to realize the value of the NFTs for the purposes of the liquidation,” wrote Christopher Farmer, a senior managing director at advisory firm Teneo, and a joint liquidator on the 3AC case.
However, the process will not include the so-called Starry Night Capital fund, a collection of assets put together by pseudonymous collector Vincent Van Dough for 3AC’s Starry Night Capital.
Back when it was launched in August 2021, 3AC said Starry Night Capital was to be a new fund for “assembling the world’s finest collection of NFTs.”
What’s next for 3AC’s Starry Night NFTs?
Liquidators have already taken custody of that collection, which includes Art Blocks, CryptoPunks, and Rare Pepe assets, in October.
While advisors stated at the time that they planned to sell the NFTs, the assets are now subject to “an application before the Eastern Caribbean Supreme Court in the High Court of Justice in the British Virgin Islands,” so will be excluded from the sale announced today.
The value of 3AC’s NFTs held by the liquidator is $21 million, according to data compiled by Dune, while NFTs still held by 3AC itself look to be worth $2.4 million.
Shifting the goods may be a challenge though, with NFT sales down sharply compared to this time last year, despite a monthly uptick in trading last month.
The crashed crypto fund filed for bankruptcy in June last year and now owes $3.5 billion to creditors.
Its collapse was one of several major blows to the industry last year and contributed to the downfall of Voyager Digital.
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Sourced from decrypt.co.
Written by Alys Key on 2023-02-23 09:54:34.