Blockchain analytics firm Nansen reported that more than 300 NFTs associated with the defunct crypto hedge fund Three Arrows Capital (3AC), have been moved into a new address.
Starry Night Capital, the fund launched by 3AC founders to look after the digital art front of their business, transferred several high-profile NFT collections from an address linked to the fund to a Gnosis Safe address.
Gnosis Safe is a multi-signature smart contract wallet that allows users to have complete self-custody over funds and digital assets.
Details of the transferred NFTs
The NFTs in question were originally acquired for prices that ranged from $1 million to $3.5 million. Pepe the Frog NFT Genesis, bought for 1000 ETH in 2021 and worth roughly $3.5 million at the time, is the most expensive NFT involved in this sudden transfer.
Other transferred NFTs include Fidenza #718, bought for 240 ETH ($1.1M) on 13 November 2021, XCOPY DANKRUPT acquired for 469 ETH ($2.0M) on 24 October 2021, XCOPY DECAY acquired for 345.69 ETH ($1.4M) on 5 December 2021.
The more modest NFTs involved in the transfer include CrypToadz #54 bought for 25 ETH ($84.6K) on 3 October 2021 and Pudgy Penguin #6869 bought for 16.9 ETH ($52.3K) on 8 January 2022.
As per data from Nansen, the portfolio of this once high-profile collection is now estimated to be around 625 ETH. The majority of the NFTs have low liquidity.
More on Starry Night Capital
Starry Night Capital was the brainchild of 3AC CEO Su Zhu, co-founder Kyle Davies and NFT collector Vincent Van Dough. The fund started with a $100 million capital for investing exclusively in the NFT space, with the aim of acquiring “the most desired” NFTs available at the time.
Data from Dune Analytics showed that 3AC spent more than $35 million during its NFT shopping spree from mid to late 2021. As per OpenSea, the unnamed destination wallet address now contains 463 pieces of digital art.
Vincent Van Dough has played a key role in helping Teneo take possession of the digital assets of Starry Night Capital. A British Virgin Islands court had appointed Teneo to oversee 3AC’s liquidation process.
Teneo had earlier thanked Van Dough for his cooperation during the transfer of NFTs to them. He has also offered to assist Teneo in the sale of digital art, which is necessary for creditors in order to preserve the remaining capital.
Three Arrows Capital has been widely regarded as the entity whose exposure to Terra and the subsequent collapse triggered a domino effect that left several crypto lenders and platforms insolvent in its wake.
Well, the hedge fund filed for chapter 15 bankruptcy on 1 July 2022 after defaulting on multiple loans.
This article was originally published on ambcrypto.com