- The cryptocurrency hedge fund owes a total of $3.5 billion.
- The art auction was facilitated by Sotheby’s and raised $2.5 million, with the Tyler Hobbs Fidenza sold at $1 million.
- Liquidators regained the NFTs after Three Arrows Capital filed for bankruptcy.
Hosted by arts broker Sotheby’s, the bankrupt cryptocurrency hedge fund company raised $2.5 million by selling its NFTs (Non-fungible tokens).
The sales of the three NFT collectibles were concluded on May 19. The arts sold were Tyler Hobbs Fidenza #725, Tyler Hobbs Fidenza #861, and Larva Labs Autoglyph.
According to the information on Sotheby’s, Tyler Hobbs Fidenza #725 was sold for $1 million, marking it the highest NFT sold at the art auction. The co-founder of the hedge fund, Kyle Davies, lauded 3AC’s work in achieving such a feat, aiming that its portfolio kicks off once again after the fiasco that happened in 2022.
At the auction’s opening, Su Zhu, the co-founder of 3AC, quoted the famous English poet Alfred Tennyson. When asked about the liquidity of the NFTs, he claimed to have sent a few of them the Sotheby’s auction results; however, he did not get any response.
Three Arrow Capitals liquidators regained the NFTs (Non-fungible tokens) after the company filed for bankruptcy due to the harsh bear market in 2022. Before the fall of the hedge fund, the value of the assets stored under its management was estimated to be $10 billion.
The Singapore-based hedge fund is presently dealing with its bankruptcy, as the crypto firm owes its creditors at least $3.5 billion.
3AC Co-Founder Files A Restraining Order Against Arthur Hayes
On May 5, Su Zhu, the co-founder of the collapsed Three Arrows Capital, filed a restraining order on the co-founder of the crypto trading platform, BitMex.
The ex-BitMex CEO was accused of tweeting at Su Zhu and partner Kyle Davies, requesting $6 million, which he claimed he was owed during the hedge fund’s crash in 2022.
The restraining order stated that Arthur Hayes was not to communicate with Su Zhu by any means possible and restrained him from publishing any detail concerning the 3AC co-founder.
How Did 3AC crash?
Founded in 2012 by Su Zhu and Kyle Davies, Three Arrows Capital was a prominent hedge fund firm with billions of assets in custody till the bear market struck, and things took a drastic turn for the successful company.
Due to poor risk management and unclear priorities with business partners, Three Arrows Capital fell when Luna and its algorithmic stablecoin, UST, crashed.
According to the bankruptcy filing, Su and Davies were accused of using the firm’s funds to pay for two Good Class Bungalows in Singapore and a $50 million new yacht.
When the company fell, it did not go down alone, as other crypto companies affiliated with it got caught in the crossfire. Voyager Digital had to file for bankruptcy due to the debt, which 3AC could not pay. Other firms like Blockchain.com, Genesis, FTX, and more were affected by the 3AC crash.
Conclusion
Hosted by Sotheby’s, 3AC’s NFT auction sale raised $2.5 million, despite the firm owing $3.5 billion to its creditors. The co-founder believed this to be a step in the right direction for the hedge fund since filing for bankruptcy in 2022.
