3AC liquidators to sell firm's NFTs to realize value amid bankruptcy

Nonfungible tokens (NFTs) belonging to the bankrupt hedge fund Three Arrows Capital (3AC) will be sold by its liquidators Teneo, according to a recent announcement.

In a notice dated Feb. 22, Joint Liquidator Christopher Farmer announced that the liquidators are intending to begin the sales of NFTs that belong to 3AC. The announcement highlighted that the sale will be done to “realize the value of the NFTs for the purposes of the liquidation.” According to the announcement, the sales will begin 28 days after the notice.

Within the announcement, the liquidators clarified that it will not include the list of NFTs that are informally dubbed as the “Starry Night Portfolio.” On Oct. 5, 300 NFTs from 3AC subsidiary Starry Night Capital were moved as part of 3AC’s bankruptcy proceedings. The liquidators highlighted that these NFTs are currently subject to an application before the a supreme court in the British Virgin Islands.

NFTs previously collected by Starry Night Capital are moving to a Gnosis Safe address.

These NFTs include:
– Pepe the Frog NFT Genesis, sold for 1,000 ETH (~$3.5M) on Oct 5, 2021
– Fidenza #718, sold for 240 ETH (~$1.1M) on Nov 13, 2021

Some other notable NFTs below pic.twitter.com/8PU13CqMnn

— Nansen (@nansen_ai) October 4, 2022

While the notice did not mention which NFTs will be sold, analyst Tom Wan pointed out on Twitter which NFTs could potentially be sold by the liquidators. According to Wan, the NFTs can include some high-profile pieces. He tweeted:

3AC Liquidator, Teneo announced they will be selling their NFT Holdings (Excluding the Starry
Night Portfolio)

Potential NFTs Being Sold:
– 11 Punks
– 1 BAYC
– 2 MAYC
– 3 Otherdeeds
– 3 Autoglphys
– 8 PEGZ

Teneo & 3AC NFT Portfolio @DuneAnalytics :https://t.co/J5DK1KQFhH

— Tom Wan (@tomwanhh) February 23, 2023

In the midst of the 3AC bankruptcy process, community members have repeatedly went off on social media to express dissatisfaction over the actions of the 3AC team. On Jan. 3, 3AC founder Su Zhu got called out on Twitter when he accused the Digital Currency Group (DCG) of conspiring with the FTX exchange to attack LUNA. Zhu’s efforts to call out DCG and FTX backfired, with community members urging him to focus on his own misdeeds.

On Feb. 10, members of the crypto community went after the newly-launched exchange backed by 3AC and Coinflex. Community members were enraged by tha launch, with some swearing to never trade in the exchange and bully those that do.