Three Arrows Capital's NFT Collection Set for Sotheby's Auction in Attempt to Repay Creditors
Sotheby's is preparing to host an auction for a collection of non-fungible tokens (NFTs) seized from now-defunct crypto hedge fund Three Arrows Capital.
In a Wednesday press release, Sotheby's revealed that it would auction the Grails collection, which is comprised of digital artwork that belongs to 3AC and its Starry Night Capital NFT-collecting fund, in a bid to recoup a portion of the $3 billion the collapsed crypto fund owes to creditors.
Sotheby's referred to the contents of the Grails collection as "some of the most significant digital artworks ever assembled," describing "Grails" as an “unparalleled collection.”
The collection includes NFTs from some of the most notable artists and valuable projects in Web3.
Specifically, users would be able to take their chance at winning “Chromie Squiggle #1780” by Snowfro, “The Golden Goose” by artist Dmitri Cherniak, Tyler Hobbs’ small-scale Fidenza #725, Larva Labs’ Zombie CryptoPunk #6649, and Autoglyphs.
"This expansive collection marks an important moment in the rise of generative art on the blockchain in 2021 and was guided by the 3AC ethos of acquiring some of the highest quality and rarest works available on the market," Sotheby’s Head of Digital Art and NFTs Michael Bouhanna.
As reported, Teneo, the advisory firm overseeing the liquidation of 3AC, announced earlier this year that it plans to sell off the firm's NFTs as part of recovery efforts.
“The Joint Liquidators intend to take steps to commence the sale of certain NFTs in their possession and control and which are beneficially owned and belonging to Three Arrows Capital,” the firm said in a memo.
According to data compiled by Dune Analytics, which tracks 3AC’s NFTs held by the liquidator, the collection is worth $21 million. Meanwhile, NFTs still held by 3AC itself look to be worth $2.4 million.
New Venture of 3AC’s Zhu Su and Kyle Davies Fails to Find Momentum
Su Zhu and Kyle Davies, the two founders of now-bankrupt crypto hedge fund Three Arrows Capital, have launched a new platform for trading crypto-related bankruptcy claims.
However, the venture, called Open Exchange, has failed to gather momentum despite the thriving market for bankruptcy claims.
In a now-deleted tweet, Open Exchange admitted that its total volume in the first 24 hours was a measly $13.64.
The firm’s CEO, Leslie Lamb, explained that the numbers are the result of the fact that it will strive to build liquidity over time without relying on internal market makers. According to Lamb, the decision was reached as a direct consequence of the collapse of FTX.
Furthermore, before the end of its first trading day, Open Exchange suffered another setback as its Twitter account was suspended for unknown reasons.
In July last year, 3AC filed for bankruptcy, declaring its business had “collapsed in the wake of extreme fluctuations in cryptocurrency markets.”
Among others, 3AC reported major losses as a result of the collapse of the TerraUSD stablecoin in May 2022.
In August 2022, the fund’s liquidators obtained the permission of a Singaporean court to gain access to key records, obtaining more information about the assets of the collapsed firm.