Liquidators Of Bankrupt Hedge Fund Three Arrows Capital To Sell Non-Fungible Tokens To Recoup Losses

The liquidators of Three Arrows Capital, a now-defunct hedge fund, have announced plans to sell some of the firm's nonfungible tokens (NFTs) as part of recovery efforts.

In a notice published on Wednesday, Teneo Senior Managing Director Christopher Farmer stated "the purpose of the sale is to realize the value of the NFTs for the purposes of the liquidation."

The sale will begin after March 23, Bloomberg reported.

While the notice did not disclose which NFTs would be up for sale, it did clarify that the "Starry Night" portfolio, an NFT-focused fund created by Three Arrows' co-founders Su Zhu and Kyle Davies during the crypto craze in 2021, will not be included in the sale.

Last year, Three Arrows collapsed after making a series of ill-timed bets that triggered margin calls when crypto prices began to decline.

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The hedge fund had previously managed around $4 billion in assets. Since then, its founders had been in a legal dispute with the court-appointed liquidators tasked with unwinding their assets.

The liquidators have accused the founders of lacking cooperation and even subpoenaed them via their Twitter accounts.

Three Arrows' 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 confirmed Starry Night Capital co-investor Vincent VanDough (aka VincentVanDough) has been cooperative and that all the NFTs of which Vincent VanDough is aware "have been accounted for and are in our possession or are being transferred to us."

Meanwhile, the Three Arrows founders are reportedly attempting to raise $25 million to launch a crypto exchange that will focus on trading in crypto claims.

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