TL;DR Breakdown
- Bankrupt 3AC has recouped about $2.5 million via NFT sales in a recently concluded auction.
- The co-founders are confident of repaying creditors.
The auction for non-fungible tokens (NFTs) from the bankrupt Singaporean cryptocurrency hedge fund, Three Arrows Capital (3AC), concluded on May 19, generating an impressive $2.5 million. Sotheby’s, the renowned fine arts broker, facilitated the auction, which featured notable collectibles such as Tyler Hobbs Fidenza #725, Larva Labs Autoglyph #187, and Tyler Hobbs Fidenza #861. The highest-selling piece was Tyler Hobbs Fidenza #725, fetching a remarkable $1 million.
3AC auctioned the NFTs on Sothebys marketplace
Following the news, Kyle Davies, co-founder of 3AC, expressed enthusiasm, noting the rising value of NFTs in the market. He wrote, “NFT grails mooning on Sothebys, WorldCoin scanning millions of eyeballs, Aptos the next Solana 3AC Portfolio is on [Fire].” Before the auction, Davies had posted “Farewell sweet Goose,” alluding to the commencement of the event.
Meanwhile, co-founder Su Zhu shared his observations, stating, “Sent a few of them the Sothebys auction results, and the response is crickets,” in response to inquiries from journalists regarding the liquidity of the NFTs. Zhu quoted the English poet, Alfred Tennyson, saying, “[Tis] better to have loved and lost than to have never loved at all,” at the start of the auction.
The NFTs being auctioned were recovered by liquidators after 3AC filed for bankruptcy in July 2022. At its peak, the hedge fund managed an estimated $10 billion in assets before succumbing to the challenges posed by the ongoing cryptocurrency bear market. The firm currently owes creditors a total of $3.5 billion.
Co-founders confident of repaying creditors
Bankruptcy proceedings for 3AC are still underway. Recently, Su Zhu obtained a restraining order against Arthur Hayes, co-founder of BitMEX and one of 3AC’s creditors, with a claimed debt of $6 million.
In a surprising turn of events, Kyle Davies has ventured into the culinary arts, opening a restaurant in Dubai. Davies and Su Zhu are also founders of the OPNX exchange, a platform designed for trading claims of distressed crypto firms like 3AC. However, the exchange recently faced scrutiny from Dubai regulators, who reprimanded it for allegedly failing to register in the emirate.
The conclusion of the NFT auction marks a significant milestone for the bankrupt hedge fund, as it generates substantial proceeds to be allocated to its creditors. The strong demand for these digital collectibles further exemplifies the increasing popularity and value associated with NFTs in the broader market. With 3AC’s bankruptcy proceedings ongoing, the fate of the remaining assets and the resolution of creditor claims remain subjects of ongoing attention and speculation within the cryptocurrency community.
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