By Michael Scott
Three Arrows Capital (3AC) liquidator issued notice expressing intent to sell hundreds of non-fungible tokens (NFTs) approximated at millions of dollars. The list reveals the need to cash on the seized NFTs to generate value for the estate of the bankrupt crypto hedge fund.
Seized NFTs Identified for Sale
The notice published on Wednesday, February 22, indicated that the NFTs were seized following the bankruptcy protection sought by the Singapore-based firm in July 2022.
The subsequent filing related to the bankruptcy protection revealed an estimated assets base of $1 billion. The filing submitted to the court outlined the NFTs estimated at $22 million as part of the assets.
Teneo informed all parties of its intention to sell the NFTs. Teneo disclosed that the value realized from the NFTs would facilitate the liquidation process.
The liquidator revealed plans to initiate steps to dispose of NFTs within 28 days. The liquidator said it would begin taking the necessary steps to sell the NFTs within four weeks.
NFTs Linked with Starry Night Capitals Spared from the Sale
Teneo clarified the NFTs targeted for sale did not include the NFT portfolio linked with Starry Night Capitals. The NFT collection excluded those linked with the fund established in August 2021 by 3AC in partnership with famous NFT collector Vincent Van Dough.
The excluded collection featured under CryptoArt is considered the world’s finest. The NFTs within the collection were shifted to the Gnosis Safe, as illustrated via the CryptoArt Twitter account.
Today, the collection ownership is subject to a motion filed in the Eastern Caribbean Supreme Court and the High Court of Justice within the British Virgin Islands.
NFTs Earmarked for Sale Shortage of Billions Owed to Creditors
The Wednesday filing detailed the NFTs earmarked for sale comprising Chromie Squiggles, Fidenza and Autoglyphs. Besides, Ringers Collections, Nimbugs and Bored Ape Kennel Club are targeted for sale. Teneo considered that each portion of NFTs attracted a floor price of $9.8 million.
The sale would fetch additional value besides the $35.6 million seized from the 3AC’s bank accounts within Singapore. However, Teneo admits that the bankrupt hedge fund has obligations running to billions.
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