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3AC's Bankruptcy and Debts to Creditors
Three Arrows Capital (3AC), a cryptocurrency hedge fund based in Singapore, is currently embroiled in bankruptcy proceedings and reportedly owes creditors an astounding $3.5 billion.
The Successful NFT Auction
A section of 3AC's non-fungible tokens (NFTs) collection, auctioned off as part of their bankruptcy proceedings, garnered a total of $2.5 million as of May 19. The auction was overseen by esteemed fine arts broker Sotheby's. Among the collectibles up for grabs were noteworthy pieces like Tyler Hobbs' Fidenza #725, Larva Labs' Autoglyph #187, and Tyler Hobbs' Fidenza #861. The item that fetched the highest bid was Tyler Hobbs' Fidenza #725, which sold for a cool $1 million.
Reactions from 3AC's Founders
In light of the successful auction, Kyle Davies, one of the co-founders of 3AC, expressed his excitement, noting the increasing value of the NFT pieces and the positive prospects for the remaining 3AC portfolio. Previously, Davies had made a poignant reference to the commencement of the auction with the statement "Farewell sweet Goose".
Simultaneously, Su Zhu, the other co-founder, showed a more subdued reaction to the lukewarm responses from journalists inquiring about the liquidity of the NFTs. Upon the start of the auction, Zhu borrowed a line from Alfred Tennyson, suggesting that it's better to have loved and lost, perhaps reflecting on their current predicament.
The Aftermath of 3AC's Bankruptcy
After 3AC declared bankruptcy in July 2022, the NFTs were reclaimed by the hedge fund's liquidators. At its pinnacle, 3AC managed assets estimated at $10 billion, before falling victim to the persistent bear market in the crypto world.
The bankruptcy proceedings for 3AC are still in progress. Notably, Zhu recently obtained a restraining order against Arthur Hayes, BitMEX's co-founder and one of 3AC's numerous creditors, who is purported to have a claim of $6 million. Meanwhile, Davies seems to have ventured into the food industry by launching a restaurant in Dubai. Both Davies and Zhu are founders of the OPNX exchange, a platform dedicated to trading claims from faltered crypto companies like 3AC. This exchange recently faced a reprimand from Dubai regulators for an alleged failure to register in the emirate.
