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Three Arrows Capital liquidator Teneo has announced that they would be selling the bankrupt firm’s prized NFTs to help recoup the over $3.6 billion owed to creditors.
The bankrupt firm’s prized NFT collection includes a host of high-profile NFTs from various collections, including Bored Ape Yacht Club (BAYC) and CryptoPunks.
Prized NFTs On The Chopping Block
Three Arrows Capital liquidator Teneo is coming for the bankrupt firm’s prized NFT collection, according to a notice published on Wednesday. The move comes as the liquidator steps up efforts to recoup the $3.5 billion owed to its creditors by the bankrupt crypto hedge fund. According to Teneo, the process of offloading the NFTs would begin after the 23rd of March, 2023. While the notice did not specify which NFTs would be sold, a research analyst, Tom Wan, speculated that it could include NFTs from high-profile NFT collections such as Bored Ape Yacht Club, Mutant Ape Yacht Club (MAYC) and Cryptopunks.
“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 clarified in its notice that the sale would be done to realize the value of the NFTs for the purpose of liquidation.
Disputed NFTs Not To Be Sold
However, the liquidators clarified that the NFTs that could potentially be sold would not include those from the “Starry Night Portfolio.” This is because the NFTs in this portfolio, while moved as part of the bankruptcy proceedings, are currently subject to an application filed in the British Virgin Islands supreme court.
“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 the 5th of October, 2021 - Fidenza #718, sold for 240 ETH (~$1.1M) on the 13th of November, 2021.”
Community Members Upset
While the bankruptcy process rumbles on, entering its eighth month, community members have expressed considerable dissatisfaction over the actions of the Three Arrows Capital team. 3AC founder Su Zhu was recently called out on Twitter when he accused Digital Currency Group (DCG) of conspiring with FTX to undermine Terra. However, community members lashed out at Zhu, pointing out his own actions.
More recently, community members went after a new exchange backed by Coinflex and Three Arrows Capital, vowing never to trade on the exchange. Three Arrows Capital had declared bankruptcy in July 2022 in a bid to protect its assets in the United States, while it undertook a liquidation of assets in the Bahamas, according to reports. Three Arrows Capital has nearly $10 billion in assets at its peak. However, it was one of the first firms to file for bankruptcy following the collapse of the TerraUSD stablecoin and its sister cryptocurrency, Luna.
Three Arrows Capital’s collapse had devastating consequences on the larger crypto ecosystem, impacting a host of other firms, such as Genesis Global Trading.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.