Over 300 NFTs From Three Arrows Capital’s NFT Fund Moved by Liquidator to New Wallet

Hundreds of NFTs collected by Starry Night Capital have been transferred to a new wallet. The NFT fund of bankrupt crypto hedge fund Three Arrows Capital (3AC) purchased the tokens in 2021; 3AC filed for bankruptcy earlier this year after taking a hit from the collapse of the Terra ecosystem and the subsequent crypto winter. Now its liquidator, Teneo, says the tokens are being transferred into its hands.

Starry Night Capital Fund’s collection of NFTs is moving to Gnosis Safe Address

Starry Night Capital’s premium collection of NFTs features valuable collectibles such asCryptopunksAmong other valuable collectibles, cryptanalytics firm Nansen said on Twitter revealed is moving to a new wallet: more than 300 tokens totaling over 400 NFT have been transferred to the Gnosis Safe account, a multi-signature Ethereum wallet.

The Starry Night Capital NFT fund was founded last year by crypto hedge fund Three Arrows Capital and an NFT collector going by the pseudonym Vincent Van Dough. Their initial intent was to raise about $100 million to acquire tokens from popular NFT collections and prominent artists.

In astatementquoted by Bloomberg and Crypto Media, Teneo, the liquidator of 3AC, explained that thanks to Vincent Van Dough’s cooperation, “all Starry Night Capital NFTs that VVD is aware of have been accounted for and are either under our ownership or have been transferred to us.” The company has indicated a desire to sell them and said it will likely work with Vincent Van Dough to oversee their disposition.

The NFTs currently being transferred include Pepe the Frog NFT Genesis, which sold for 1,000 ; ETH (3.5 million on October 5, 2021), Fidenza #718 sold for 240, ETHon November 13, 2021 (about $1.1 million), several Cryptoart NFTs from artist XCOPY sold for 1.4-2.3 million in December, and Robbie Barratt’s AI-generated Nude Portrait #7 Frame #184 sold for $1.1 million on ether.

Among them were the October sales of Cryptoadz – Cryptoadz #5634 (135 ETH) and Cryptoadz #54 (25 ETH) – Meridian #684 and Meridian #171 (prices 90 and 80 respectively ETH ) and several Pudgy Penguin (Pudgy Penguin #6869, priced at 16.9 ), sold for ETHon January 8, 2022, Nansen detailed in a Tuesday tweet.

According to the company, their current estimatedportfoliois worth 625ETH(valued at less than $840,000 at the time of writing, well below the sale price), with the 24-hour median or 7-day price with no sales in the past 24 hours based on rates. The analysis firm noted that 89% of NFTs are illiquid, with fewer than 35 sales in the past 7 days.

Three Arrows Capital found itself in trouble after the collapse of Terra UST and LUNA. The fund had invested millions of dollars in the Terra ecosystem, and its founders, Su Zhu and Kyle Davies, blamed their exposure for the crisis.

“What we failed to recognize was that Luna could go to virtually zero in a matter of days, which would catalyze an industry-wide credit crunch and put significant pressure on all of our illiquid positions,” Zhu said in an interview with Bloomberg in July. At the same time, he admits the team may have liked Terra co-founder Do Kwon too much.

3AC filed for bankruptcy in June. It faced liquidation because of a court order issued in the British Virgin Islands and an investigation by financial and judicial authorities in Singapore. Teneo was appointed liquidator of Three Arrows Capital by the British Virgin Islands court, and the Singapore High Court granted the petition to learn more about 3AC’s assets.

Image credits: Shutterstock, Pixabay, Wiki Commons

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