Sotheby’s auction house has sold bankrupt hedge fund Three Arrows Capital’s (3AC) collection of non-fungible tokens (NFTs) in New York, earning over $2.4m to help repay creditors. The proceeds from the sale of the NFT collectibles will be used to pay off the creditors of Three Arrows, which filed for bankruptcy in July 2022. Before its insolvency, the hedge fund had accumulated an impressive collection of NFTs, including rare digital artworks. It also owned several Cryptopunks, a Cryptokitty, and a Bored Ape Yacht Club NFT.
Sotheby’s Grails collection featured several generative artworks from the Fidenza, Ringers, and Larva Labs’ pioneering NFTs, including Autoglyph 187 and Crypto Punk #1326. Fidenza #725 sold for $1.016m, well above its estimate of $120,000-$180,000. Going forward, Sotheby’s will continue to help Teneo offload 3AC’s NFT assets. The collection will be released in chapters across various sales formats ranging from private sales to auctions. These will occur across multiple locations, globally.
Earlier this month, Sotheby’s announced plans to expand its own dedicated NFT marketplace. The new marketplace will enable peer-to-peer NFT sales executed on Ethereum and Polygon. In addition to the digital artworks in the GRAIL collection, Three Arrows also held Starry Night Capital’s NFTs. However, as 3AC’s insolvency proceedings unfold, liquidating the Starry Night portfolio has proven complex. The future of the Starry Night collection is subject to a high court application in the British Virgin Islands.
