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Amid Bankruptcy Proceedings, a Prominent NFT Collection Was Transferred From the 3AC Wallet

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Amid Bankruptcy Proceedings, a Prominent NFT Collection Was Transferred From the 3AC Wallet

The co-founders of Three Arrows Capital established a non-fungible token (NFT) fund last year. Since then, a significant number of its digital art assets have been transferred to another wallet.

The crypto insights and research company Nansen published a report on October 4 stating that more than 300 NFTs had been transferred from the collection of Starry Night Capital to an address associated with Gnosis Safe. Nonetheless, the true number may be substantially greater.

In August 2021, 3AC executives Su Zhu and Kyle Davies, along with NFT collector Vincent Van Dough, established Starry Night Capital, a firm concentrating on NFTs, initially capitalized at $100 million. It aimed to invest in “the most desired” NFTs on the market at the moment.

Nansen brought attention to several noteworthy NFTs that were currently in motion. When they were sold during the cryptocurrency bull run in late 2021, their prices varied from one million to three and a half million dollars in ETH.

The NFTs that Starry Night Capital once collected is being moved to an address provided by Gnosis Safe.

These non-fungible tokens include:

  • Pepe the Frog NFT Genesis, sold on October 5, 2021, for 1,000 ETH (about $3.5 million).
  • Fidenza # 718 sold on November 13, 2021, for 240 ETH (approximately $1.1 million).

 

3AC Insolvency

Although the reasons behind the decision have not yet been revealed, Three Arrows is still in a precarious financial situation after filing for bankruptcy in June. Since then, Zhu and Davies have been engaged in a legal battle with the liquidators appointed by the court over the distribution of the balance of their assets.

Nansen, on the other hand, has been proven wrong in the past. In September, it gave the wrong information about a wallet that belonged to 3AC. Instead, the wallet was held by Matrixport, a company that offers financial services for cryptocurrency.

Getting Everything Out of the Wallet

The high-profile NFT collection was sent to Gnosis Safe, a self-custody platform for digital assets. This was the final destination for the collection.

According to Nansen’s estimation, the portfolio is currently valued at 625 ETH, which, at the current price, is equivalent to around USD 847,000. In addition, it was said that fewer than 35 transactions had taken place for virtually all of the NFTs, meaning that they had poor liquidity.

More than 300 NFTs had been transferred from the collection of Starry Night Capital to an address associated with Gnosis Safe.

OpenSea reports that there are now 463 items stored at the target wallet address. Based on what Etherscan found, the last time an ERC-721 token was sent to the Gnosis wallet was about 3.5 hours ago.

According to OpenSea, “Pepe the Frog NFT Genesis” is the most costly non-fungible token in the collection. Its most recent sale price was 1,000 ETH. Fidenza #718, Some Other Asshole, DANKRUPT, and DECAY are among the other notable names in the collection, all of which have sold for between 240 and 550 ETH.

Dune Analytics has determined that 3AC spent around $35 million on NFTs. However, it is unknown where the remaining cash for the collection was allocated.