Last year, a non-fungible token (NFT) fund created by Three Arrows Capital co-founders has now seen many of its digital art assets moved to another wallet.
On Oct. 4, crypto insights and analysis firm Nansen reported that more than 300 NFTs had been moved from the Starry Night Capital collection to a Gnosis Safe address. However, the actual figure may be much higher.
Starry Night Capital was a $100 million NFT-focused fund co-founded by 3AC executives Su Zhu and Kyle Davies and NFT collector Vincent Van Dough in August 2021. It planned to invest in “the most desired” NFTs on the market at the time.
Nansen highlighted some of the notable NFTs that were on the move. They ranged in price from $1 million to $3.5 million in ETH when sold during the crypto bull run of late 2021.
Clearing out the wallet
The destination for the high-profile NFT collection was Gnosis Safe which is a self-custody platform for digital assets.
Nansen estimates that the current portfolio value is 625 ETH, worth approximately $847,000 at current prices. It added that almost 90% of the NFTs had low liquidity with fewer than 35 sales over the past seven days.
According to OpenSea, the destination wallet address now contains 463 items. Etherscan revealed that the last ERC-721 token sent to the Gnosis wallet went about three and a half hours ago.
OpenSea lists the most expensive NFT in the collection as “Pepe the Frog NFT Genesis,” which last sold for 1,000 ETH. Other notable names in the collection include Fidenza #718, Some Other Asshole, DANKRUPT, and DECAY, all previously selling from 240 to 550 ETH.
According to Dune Analytics, 3AC spent around $35 million on NFTs, so it is unclear where the rest of the funding for the collection went.
3AC liquidation
The motives behind the move remain to be seen, but Three Arrows is still in dire straits after filing for bankruptcy in June. Zhu and Davies have since been sparring with court-appointed liquidators over the unwinding of the remainder of their assets.
Nansen has been wrong in the past, however. In September, it mistakenly reported a wallet as belonging to 3AC, whereas it was actually owned by the crypto financial services platform Matrixport.
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Source: https://beincrypto.com/high-profile-nft-collection-moved-3ac-wallet-bankruptcy-proceedings/