Liquidators of bankrupt hedge fund Three Arrows Capital Ltd. said they will take steps to sell some of the firm’s nonfungible tokens as part of their recovery efforts.
(Bloomberg) — Liquidators of bankrupt hedge fund Three Arrows Capital Ltd. said they will take steps to sell some of the firm’s nonfungible tokens as part of their recovery efforts.
“The purpose of the sale is to realize the value of the NFTs for the purposes of the liquidation,” Christopher Farmer, senior managing director at advisory firm Teneo wrote in a notice on Wednesday. The steps will commence after March 23, the notice said.
The document did not provide details of the NFTs up for sale, but clarified that these do not include the popular “Starry Night” Portfolio. The latter is an NFT-focused fund that was started by Three Arrows co-founders Su Zhu and Kyle Davies during the crypto craze in 2021.
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Three Arrows collapsed last year after a series of mistimed bets and soured crypto prices triggered margin calls. It previously managed around $4 billion in assets. Its founders have since been sparring with the court-appointed liquidators charged in June with unwinding their assets. The liquidators have alleged lack of cooperation from the founders and recently subpoenaed them via their Twitter handles.
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Three Arrows’ failure was one of a handful of high profile crypto implosions last year, from the TerraUSD stablecoin meltdown in May to the FTX bankruptcy in November. The hedge fund’s creditors include Digital Currency Group, the parent company of crypto lender Genesis Global, which filed a $1.2 billion claim against the hedge fund.
Teneo has previously said Starry Night Capital co-investor VincentVanDough has been cooperating and all the NFTs of which VincentVanDough is aware “have been accounted for and are in our possession or are being transferred to us.”
Meanwhile the Three Arrows founders are seeking to raise about $25 million for a crypto exchange that will focus on trading in crypto claims.
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