Three Arrows Capital (3AC) Moves Millions of Dollars from NFTs to New Portfolio

On the fourth of October, Crypto Analytics and Statistics Corporation Nansen It reported that a high-profile batch of more than 300 NFTs from a fund linked to the now-bankrupt Three Arrows Capital, has been transferred to the address of the Gnosis Safe wallet.

Major transfer from Tri-Equity Capital Fund

The transfer originated from the Starry Night Capital portfolio, a $100 million fund co-founded by three Arrow Capital executives, Su Zhu and Kyle Davies, along with an NFT collector known under the pseudonym “Vincent Van Dough,” in August 2021.

After the initial NFT boom, the fund served as an investment vehicle for digital holdings with the goal of compiling “the world’s best collection of CryptoArt.”

Three Arrows’ NFT wallets initially extracted assets from well-known groups such as CryptoPunks, It has invested millions of dollars in art pieces by artists such as Dmitriy Chernyak. The company also had plans to open physical showrooms and an educational site focused on NFTs.

High-level NFTs in the group

according to Bloomberg The NFT group located in Starry Night Capital is valued at approximately $35 million. according to NansenSome of the NFTs involved, when sold at the cryptocurrency’s peak in late 2021, charged prices between $1 and $3.5 million in ETH.

One of the most expensive NFTs was“Pepe the Frog NFT Genesis”which sold for 1,000 Ether (ETH) in October of last year, valuing it at $3.5 million at the time.

Another high-profile NFT wasFidenza. The assets from Tyler Hobbs’ generative NFT project based on Ethereum were valued at approximately $1.1 million at the time of purchase in November 2021.some more **hole’,DANKRUPT’And the ‘caries’, Three other well-known names were chosen for the group, each of which previously sold for between 240-550 ETH.

according to NansenThe value of the wallet as of now is 625 ETH, or about $847,000 at the current exchange rate. He also mentioned that with fewer than 35 sales over the previous seven days, it is likely that 90% of NFTs have poor liquidity.

The motive behind the latest transfer remains unclear, as the move occurred nearly four months after all digital tokens in Starry Night Capital’s core crypto wallet were moved to a new address.

Transferring assets to Gnosis Safe is noteworthy, as it is a smart contract, digital asset management platform that requires multiple signatures before approving an asset transfer, ensuring that multiple team members approve each transaction in advance. This process is key to prevent one party from pulling out and fleeing with valuable assets

After declaring bankruptcy in June, Three Arrows Capital found itself in a complicated financial situation, with the company’s founders embroiled in a conflict with court-appointed liquidators over the dissolution of the rest of their holdings.

A British Virgin Islands court ordered the liquidation of Three Arrows Capital in June. Teneo took control of the divestiture, and now controls at least $40 million of 3AC’s assets. However, the amount is only a fraction of 3AC’s debt to creditors, which comes to at least $2.8 billion.

The collapse of Terra (LUNA) in May had a ripple effect on the entire cryptocurrency market. While 3AC appeared to be a successful crypto fund, its $600 million in assets from exposure to Terraform Labs signaled the beginning of the hedge fund’s tragic end.

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