Teneo, the liquidation company in charge of the bankruptcy process of Three Arrows Capital (3AC), has revealed that it has taken possession of non-fungible tokens (NFTs) belonging to the struggling digital asset hedge fund.
A Bloomberg report said the NFTs were linked to Starry Night Capital, a fund created by the co-founders of 3AC. The report valued the assets at around $35 million, a far cry from the $2.8 billion the company owes to creditors.
Confirming that it was in possession of the digital collectibles, Teneo said it would begin selling the NFTs at fair market value. The fund was created by the trio Su Zhu, Kyle Davies and Vincent Van Dough (VVD) with the central objective of “investing in the most sought-after NFTs”.
“We would like to make it clear that VVD has cooperated with the joint liquidators with the aim of protecting the value of these assets for the benefit of all relevant stakeholders and has sought to ensure that no asset of the Starry Night Portfolio is disposed of improperly. , or without the sanction of the BVI court if necessary,” the report read.
The NFTs in question exceed 300, and chain data company Nansen has confirmed that the digital collectibles include highly sought-after NFTs like Pepe the Frog NFT Genesis which sold for $3.5 million last year. .
NFTs previously collected by Starry Night Capital are transferred to a Gnosis Safe address.
These NFTs include:
– Pepe the Frog NFT Genesis, sold for 1,000 ETH (~$3.5 million) on October 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
Teneo was appointed by a court in the British Virgin Islands to liquidate the assets of the hedge fund, while a High Court in Singapore gave even greater powers to the liquidator. 3AC had been running its operations since 2012, peaking at $18 billion in digital assets before things came crashing down in June following Terra’s collapse.
Creditors scan the horizon for hopeful eyes
Court documents reveal that 3AC’s creditors exceed more than 20 well-known companies in the industry, some of which suffered severe financial difficulties due to the corporate implosion. BlockFi, a digital asset lender, suspended withdrawals for its clients and opened talks with FTX over a possible acquisition, while Voyager and Genesis lent $650 million and $2.36 billion, respectively.
Others include Deribit, Blockchain.com and Finblox, with debts of over $1 billion. 3AC filed for bankruptcy in the British Virgin Islands and New York and has been in negotiations with liquidators ever since.
“We remain optimistic that these parties will provide access to complete records and all relevant information to enable us to fully discharge our responsibilities in the interest of creditors,” a statement from Teneo said in May.
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