Advertisement
U.S. markets closed
  • S&P Futures

    5,304.25
    -4.00 (-0.08%)
     
  • Dow Futures

    40,140.00
    -36.00 (-0.09%)
     
  • Nasdaq Futures

    18,465.00
    -38.75 (-0.21%)
     
  • Russell 2000 Futures

    2,145.20
    +6.80 (+0.32%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0789
    -0.0005 (-0.04%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • Vix

    13.01
    +0.23 (+1.80%)
     
  • GBP/USD

    1.2624
    +0.0002 (+0.01%)
     
  • USD/JPY

    151.4710
    +0.0990 (+0.07%)
     
  • Bitcoin USD

    70,753.62
    +949.44 (+1.36%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,371.22
    +203.15 (+0.51%)
     

Three Arrows Capital liquidator to sell NFTs to help recoup $3.5B owed to creditors, Apes and Punks likely on the block

Photo Illustration by Fortune

The liquidator of failed crypto hedge fund Three Arrows Capital is coming for its prized NFTs.

In a notice published Wednesday, the liquidator, Teneo, said the process of offloading the bankrupt firm’s NFTs would begin after March 23 as part of a bid to recoup the $3.5 billion it owes to creditors.

Although the notice did not name the NFTs that would be sold, Tom Wan, a research analyst at 21Shares parent company 21.co, said it could include high profile NFTs like CryptoPunks, as well as a Bored Ape, and a couple of Mutant Apes.

The notice did specify that non-fungible tokens in Three Arrows’ Starry Night Portfolio of digital collectibles would not be sold as they are subject to a claim in the Eastern Caribbean Supreme Court in the British Virgin Islands.

The Starry Night Porfolio was created by Three Arrows Capital founders Kyle Davies and Su Zhu in 2021 when NFTs skyrocketed in value. The fund behind the portfolio, Starry Night Capital, once aimed to raise $100 million, and was able to accumulate NFTs from collections such as Rare Pepe, Fidenza, CrypToadz, along with works from NFT artist XCOPY, according to The Block.

In October, Teneo moved about 300 of the Starry Night Portfolio NFTs worth around 625 Ether, or $1.03 million, to a Gnosis Safe that requires multiple signatures to move the assets.

The news comes as Three Arrows’ bankruptcy proceedings near their eighth month. The firm declared chapter 15 bankruptcy in early July to protect its U.S. assets while it undergoes a liquidation of its assets in the Bahamas, Bloomberg reported at the time.

At its peak, Three Arrows’ managed an estimated $10 billion in assets, but it was among the first major crypto firms to declare bankruptcy last year after it was hit hard by the collapse of the stablecoin TerraUSD and its sister cryptocurrency Luna.

The firm’s collapse rippled across the crypto ecosystem, damaging other notable companies like Genesis Global Trading, which it owes $2.3 billion.

Meanwhile, the firm’s disgraced founders, Davies and Zhu are trying to raise $25 million to fund a new crypto exchange called GTX that would try to profit from the increasing number of crypto bankruptcies.

This story was originally featured on Fortune.com

More from Fortune:
5 side hustles where you may earn over $20,000 per year—all while working from home
Millennials’ average net worth: How the nation’s largest working generation stacks up against the rest
Looking for extra cash? Consider a checking account bonus
This is how much money you need to earn annually to comfortably buy a $600,000 home

Advertisement