Teneo, the liquidator responsible for the Three Arrows Capital (3AC) bankruptcy process, confirmed in a statement to Cointelegraph on Oct. 5 that it holds custody of NFTs transferred from addresses related to Starry Night Capital, a fund launched by the company. – founders of the now bankrupt hedge fund.
According to the company, the collection motion was part of the liquidator’s duty to identify assets and maximize recoveries on behalf of all creditors. A report from Bloomberg estimated that the total value of Starry Night Capital Group is around $35 million. It represents only a fraction of the $2.8 billion 3AC owes to its creditors.
The company statement read:
“We would like to make it clear that VVD [NFT collector pseudonym Vincent Van Do] has collaborated with JLs [Joint Liquidators] in an effort to protect the value of these assets for the benefit of all relevant stakeholders and has endeavored to ensure that the Starry Night Portfolio assets will not be disposed of improperly, or without sanction from a British Virgin Islands court if necessary.”
VVD has also offered to help with the eventual sale of 3AC NFTs and will likely oversee the disposal of assets with the company, Teneo said.
In 2021, 3AC founders Su Zhu, Kyle Davies, and pseudonymous NFT collector Vincent Van Dao founded Stary Night Capital, a token-focused non-fungible fund initially intended to invest exclusively in “the most sought-after funds.” NFTs.
In August, Teneo was named liquidator in a 3AC case. The Singapore-based hedge fund went bankrupt in the wake of the Terra ecosystem crash earlier this year. The company, which had more than $10 billion in assets under management, eventually filed for Chapter 15 bankruptcy on July 1 in a New York court.