Three Arrows Capital was a Singapore-based cryptocurrency hedge fund which was ordered to liquidate on 27 June 2022 by a court in the British Virgin Islands. It was founded in 2012 by Kyle Davies and Su Zhu.
It invested assets worth more than $10 billion in some major projects, such as Terra and Solana.
With this $10 billion in assets, it was one of the most prominent crypto hedge funds in the world.
Later in July it headed to bankruptcy court after the plunge in cryptocurrency prices and a particularly risky trading strategy combined to wipe out its assets and leave it unable to repay lenders.
While filing for bankruptcy it had an estimated asset of about $1 billion, in which the NFTs share was about $22 million.
Liquidation about to begin
After nearly a year after its partnership with Teno a management consultancy company for the liquidation of the assets of the Three arrows company, now Teneo has listed out the NFTs which were seized during the bankruptcy, to be sold soon.
Teneo is a public relations and advisory company. The company was founded in June 2011 by Declan Kelly, Paul Keary, and Doug Band, and currently has more than 1,450 employees located in 40 offices. In 2019, Teneo sold a majority stake to CVC Capital Partners, at a total valuation of around $700 million.
Wednesday’s filing and sale announcement!
“to realize the value of the NFTs for the purposes of the liquidation.” Said Teneo on Wednesday, it also mentioned that it will initiate the required steps in selling these NFTs within the next 28 days.
They have also mentioned that they have considered all the possible opportunities to realize and maximize the value of the assets of the company in order to meet its creditors and selling these NFTs looks promising one.
Liquidators managed to seize $35.6 million from 3AC’s bank accounts in Singapore in December even though the firm still owes billions to its creditors.
As the market for NFT is evolving, more companies will likely begin to explore the potential of these digital assets. For 3AC liquidators, selling these NFTs represents an efficient way to fetch the total value for the creditors.