blockworks.co
Several NFTs belonging to failed crypto hedge fund firm Three Arrows Capital have sold for millions of dollars at auction as part of liquidation proceedings.
Around seven NFTs were sold for a total of around $2.5 million via an auction at Sotheby’s, Reuters reported Saturday.
The star of the show? “Fidenza #725” — a digital artwork featuring an array of graphic dashes and curves in subdued hues — fetched over $1 million.
The asset, which is still currently under Sotheby’s control, had previously been receiving bids on NFT marketplace OpenSea for about 50 ether (ETH) — worth some $90,000, data shows. On OpenSea, users may bid for unlisted items they wish to own, though it is up to the entity in possession to agree to the bid.
3AC purchased the Fidenza for 135 ETH on July 31, 2021, valued at more than $340,000 at the time.
Data shows NFT collection CryptoPunks was heavily favored by the firm. 3AC made multiple purchases of CryptoPunks on the same date, totaling $3 million, according to a Dune dashboard.
CryptoPunks is a collection of 10,000 unique pixel art characters on the Ethereum blockchain, created by Larva Labs. It is considered one of the pioneering and influential projects in the NFT space.
Other NFTs sold included the Ethereum-based TheBirdHouse collection, Slacker Duck Pond and digital art NFTs originally listed on the marketplace Foundation at a time when it was invite-only for creators.
Starry Night Capital, the investment fund focused on NFTs owned by 3AC founders, is believed to have spent over $35 million on digital collectibles in 2021. That amount eventually whittled down to just over $4 million following significant headwinds faced by the crypto market.
The Singaporean crypto powerhouse hit a brick wall last year following the collapse of the Terra ecosystem, to which it had significant exposure.
Founded in 2012 by crypto investors Su Zhu and Kyle Davies, the firm operated as a hedge fund and venture capitalist in early-to-late-stage startups.
After staring down more than $400 million in liquidations in 2022 due to poor risk management, 3AC was eventually ordered into liquidation by a British Virgin Islands court in late June 2022.