Embattling crypto hedge fund manager Three Arrows Capital backed Starry Night Capital reported to face the recent actions in series of bankruptcy proceedings. The liquidators handling the bankruptcy proceedings of 3AC, Teneo assured of taking the collection’s custody following the transfer of the NFT collections based on Ethereum to a new wallet.
In its notice to Starry Night Portfolio, the business advisory firm Teneo stated that it now holds the possession of Starry Night Capital’s owned non-fungible tokens collections. A huge chunk of these assets were said to transfer to the whole new wallet within the last two days.
In 2021, Starry Night Capital is an NFTs investment focusing fund came into existence given the significant surge in NFTs popularity. The fund was established following the partnership of Three Arrows Capital and Vincent Van Dough, a pseudonymous investor.
Teneo stated all the NFTs belonging to Starry Night Capital were accounted for and hence came in possession of the liquidator firm. The firm noted the contribution of pseudonymous investors in order to facilitate NFTs transfer and also to ensure their prohibition of selling outside the ongoing liquidation process. Vincent Van Dough will also help Teneo in recovering the losses of 3AC while helping it in selling digital collectibles.
The NFT collection consisted of a variety of NFTs from prominent digital art collectibles. It includes from CryptoPunks to Rare Pepes and several other such valuable NFTs. According to the report, the 3AC NFT fund spent up to 35 million USD in overall NFTs purchase during last year.
Several Bad Decisions Led 3AC to Destruction
Three Arrows Capital was evidently a prominent hedge fund within the crypto market. Since the firm heavily invested in UST and LUNA tokens of Terra ecosystem, it went on to face insolvency following the Terra network’s collapse in May this year.
Additionally, several other factors such as staked Etherem and the Grayscale Bitcoin Trust like bets also brought unproductive results.
Following the losses, In June, 2022 the hedge fund manager went on to file for bankruptcy under the Chapter 15 bankruptcy proceedings. In filings, the firms claimed a debt of more than 3.5 billion USD. Singapore high court also ordered a strict investigation to find the reasons behind the collapse of 3AC.
Source: https://www.thecoinrepublic.com/2022/10/06/three-arrows-capitals-nft-fund-getting-liquidated/