Hundreds of non-fungible tokens (NFTs) collected by Starry Night Capital have been transferred to a new wallet. The NFT fund of the insolvent crypto hedge fund Three Arrows Capital (3AC) bought the tokens in 2021. 3AC filed for bankruptcy earlier this year, after taking a hit from the collapse of the Terra ecosystem and the ensuing crypto winter. Now its liquidator, Teneo, says the tokens are being transferred into its hands.
Starry Night Capital Fund’s NFT collections are being moved to Gnosis secure address
Crypto analytics firm Nansen revealed on Twitter that NFTs from Starry Knight Capital’s premium collection, featuring Cryptopunks among other valuable collectibles, are moving to a new wallet. More than 300 tokens totaling over 400 NFTs have been transferred to a Gnosis Safe account, a multi-signature Ethereum wallet.
The Starry Night Capital NFT fund was established last year by crypto hedge fund Three Arrows Capital and an NFT collector going by the pseudonym Vincent Van Dough. Their initial intention was to raise some $100 million in order to acquire tokens from popular NFT collections and prominent artists.
In a statement quoted by Bloomberg and Crypto Media, 3AC’s liquidator, Teneo, said that thanks to Vincent van Duff’s collaboration, “all Starry Night Capital NFTs, of which VVD is aware, have been accounted for and in our possession.” are or are being transferred to us.” The firm indicated it wanted to sell them, saying it would work with Vincent van Dough to oversee their disposal.
The NFTs being transferred now include Pepe the Frog NFT Genesis, sold for 1,000 ETH (approx. $3.5 million) on Oct. 5, 2021 and Fidenza #718, sold for 240 ETH (around $1.1 million) on Nov. 13, 2021, several Cryptoart NFTs by the artist XCOPY, sold for between $1.4 and $2.3 million in December, and AI generated Nude Portrait #7 Frame #184 by Robbie Barrat, sold for $1.1 million in ether.
Some of them are also CryptoEdz – CryptoEdz #5634 (135 ETH) and KryptoEdz # 54 (25 ETH) sold in October – Meridian # 684 and Meridian #171 (priced at 90 and 80 ETH respectively), and several Pudi Penguin, including Included are Puddy Penguin #6869, which was sold on January 8, 2022 for 16.9 ETH, Nansen explained in his tweet on Tuesday.
According to the company, their current estimated portfolio value is 625 ETH (less than $840,000 at the time of writing, a much lower valuation than their sale value), based on the 24-hour median price or seven-day price rate where no sales were made in the last 24 hours. The analytics firm pointed out that 89% of the NFTs have low liquidity, with less than 35 sales in the last seven days.
Three Arrows Capital found itself in trouble after the collapse of Terra UST and Luna. The fund had invested millions of dollars in the Terra ecosystem and its founders, Su Zhu and Kyle Davis, attributed the risk to the crisis.
“What we failed to realize was that Luna was capable of falling to effective zero in a matter of days and that this would catalyze a credit squeeze across the industry that would put significant pressure on all of our illiquid positions,” Zhu said in interview with Bloomberg in July, while also admitting the team may have been too fond of Terra’s co-founder Do Kwon.
3AC filed for bankruptcy in June. It was facing liquidation from a court order issued in the British Virgin Islands and an investigation by the financial and judicial authorities in Singapore. Teneo was appointed by a British Virgin Islands Court to liquidate Three Arrows Capital, and the Singapore High Court approved his plea to have more insight into 3AC’s assets.
