A new sale of some of the non-fungible tokens (NFTs) owned by the now-bankrupt Singaporean crypto hedge fund Three Arrows Capital (3AC) is set to begin in the near future. Christopher Farmer, a senior managing director at consultancy Teneo, stated in a notice that the Joint Liquidators of 3AC are taking steps to commence the sale of certain NFTs in their possession and control. The purpose of the sale is to realize the value of the NFTs for the purposes of the liquidation and is expected to commence within 28 days of the notice, or after March 23, 2023. It is important to note that the NFTs up for sale are not related to the “Starry Night Portfolio” which is currently being considered by the Eastern Caribbean Supreme Court.
In June 2022, Teneo was appointed by the British Virgin Islands court to serve as the liquidators of 3AC, which owes more than USD 3.5bn in unsecured claims to its creditors. Earlier this month, 3AC’s two founders, Su Zhu and Kyle Davies, launched a new platform for trading in crypto-related bankruptcy claims called Open Exchange. The platform has opened its waitlist for interested users who want to put their claims up for sale.
The announcement has caused mixed reactions, with some questioning whether 3AC’s co-founders are qualified to launch a new crypto-focused venture after their previous company’s collapse had a major impact on the crypto market. Zhu has admitted that 3AC had taken massive bets on the continued appreciation of cryptocurrency prices, a strategy which ultimately failed.