The bankrupt crypto hedge fund Three Arrows Capital-backed fund, Starry Night Capital’s NFTs are on the verge of liquidation. 3AC is set to liquidate its NFTs as part of its ongoing bankruptcy proceedings.
The firm stated that the expensive Ethereum-based NFTs belonging to Starry Night Capital are now in possession of liquidator Teneo. As per the liquidator’s statement, the NFTs have been accounted for and are in their possession or are being transferred to them.
The Starry Night fund was initially launched in August 2021 in cooperation with NFT art collector and social media influencer with the pseudonym Vincent Van Dough. Teneo credited Vincent Van Dough for facilitating the transfer of the NFTs and ensuring that they weren’t sold outside the liquidation proceedings.
Teneo also said that a pseudonymous collector will assist the firm sell the NFT collection to cover Three Arrow Capital’s losses. The collections in the custody include an array of Art Blocks NFTs, CryptoPunks, Rare pepes, and other valuable pieces.
According to the incomplete list of Starry Night’s holdings from data platform Dune, the firm invested at least $35 million in these NFTs in 2021.
The news came after a key court decision in Singapore nodding Three Arrows Capital’s liquidators to begin a probe on collapsed crypto hedge fund’s remaining assets in a major jurisdiction.
Nevertheless, the liquidator behind bankruptcy proceedings can cover millions of dollars worth of ETH by liquidating the NFT holdings given the continued demand for CryptoPunks and other prominent generative artworks.