Bankrupt 3AC Raises $2.5M Via NFT Auction – Cryptopolitan
The auction for non-fungible tokens (NFTs) from bankrupt Singaporean cryptocurrency hedge fund Three Arrows Capital (3AC) ended on May 19, generating an impressive $2.5 million. Sotheby’s, the renowned art dealer, facilitated the auction, which featured notable collectibles such as Tyler Hobbs Fidenza #725, Larva Labs Autoglyph #187 and Tyler Hobbs Fidenza #861. The top selling piece was Tyler Hobbs Fidenza #725, fetching a remarkable $1 million.
3AC auctioned the NFTs on Sotheby’s marketplace
Following the news, Kyle Davies, co-founder of 3AC, expressed enthusiasm, noting the increasing value of NFTs in the market. He wrote: “NFT grails mooning on Sothebys, WorldCoin scans millions of eyeballs, Aptos next Solana 3AC Portfolio is on [Fire].” Before the auction, Davies had posted “Goodbye sweet goose,” referring to the beginning of the event.
Meanwhile, co-founder Su Zhu shared his observations, saying, “Sent some of them the Sothebys auction results and the answer is crickets,” in response to inquiries from reporters regarding the liquidity of the NFTs. Quoting the English poet, Alfred Tennyson, Zhu said: “[Tis] better to have loved and lost than never to have loved at all”, at the start of the auction.
The NFTs being auctioned off 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 of the ongoing cryptocurrency bear market. The firm currently owes creditors a total of $3.5 billion.
Co-founders who are confident of paying back creditors
The bankruptcy proceedings for 3AC are still ongoing. 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 twist, Kyle Davies has ventured into the culinary arts, opening a restaurant in Dubai. Davies and Su Zhu are also the founders of the OPNX exchange, a platform designed for trading claims from distressed crypto firms such as 3AC. However, the exchange recently came under scrutiny from Dubai regulators, who reprimanded it for allegedly failing to register with the emirate.
The conclusion of the NFT auction marks a significant milestone for the bankrupt hedge fund, as it generates significant proceeds to be distributed to creditors. The strong demand for these digital collectibles further exemplifies the growing popularity and value associated with NFTs in the wider market. With 3AC’s bankruptcy proceedings ongoing, the fate of its remaining assets and the resolution of creditor claims are the subject of continuous attention and speculation in the cryptocurrency community.
