Bankrupt crypto lender 3AC’s liquidators set to dump millions worth of seized NFTs
Teneo, the US-based liquidator overseeing the bankruptcy of crypto hedge fund Three Arrows Capital (3AC), plans to sell non-fungible tokens (NFTs) estimated to be worth millions of dollars, according to a Wednesday note from Joint Liquidator Christopher Farmer.
See related article: CFTC, SEC investigate if bankrupt 3AC misled investors, failed to register business
Fast facts
- Singapore-based 3AC filed for bankruptcy in July and estimated its assets to be valued at around US$1 billion, including NFTs worth about US$22 million at the time, according to a document obtained by The Block.
- Farmer said the sale would be made to “realize the value of the NFTs for the purposes of the liquidation,” with necessary steps for the sales expected to commence in the next 28 days from writing.
- The announcement clarified that the NFTs sold would not include those from the portfolio of 3AC subsidiary Starry Night Capital. According to blockchain security firm Nansen, this portfolio consists of at least 6 NFTs last sold for a value above US$1 million.
- On Oct. 5, 2022, 300 NFTs belonging to Starry Night Capital NFTs were moved as part of 3AC’s bankruptcy proceedings and are currently subject to an application before the supreme court in the British Virgin Islands, the note added.
- According to a tweet from crypto analyst Tom Wan, potential NFTs that 3AC could sell include some high-profile pieces such as 11 cryptoPunks, a Bored Ape Yacht Club, Mutant Ape Yacht Club NFT, and 3 Others Deeds.
- While the NFT market has been volatile over the past year, global non-fungible token (NFT) sales surged by 159% over the seven-day period of Feb. 17 to Feb. 23. This month has seen about US$1.5 billion in total NFT sales volume, the highest monthly figure since May of last year, according to data from NFT aggregation site CryptoSlam.
See related article: Judge approves subpoenas for 3AC cofounders
