In a remarkable turn of events, the auction for parts of bankrupt Singaporean cryptocurrency hedge fund Three Arrows Capital’s (3AC) nonfungible tokens (NFT) collection concluded on May 19, amassing a staggering $2.5 million.
The auction, facilitated by renowned fine arts broker Sotheby’s, featured highly sought-after collectables such as Tyler Hobbs Fidenza #725, Larva Labs Autoglyph #187, and Tyler Hobbs Fidenza #861. The highest bid of $1 million was placed on Tyler Hobbs Fidenza #725, media reports said.
Co-founder of 3AC, Kyle Davies, expressed his excitement regarding the news, stating, “NFT grails mooning on Sotheby’s, WorldCoin scanning millions of eyeballs, Aptos the next Solana 3AC Portfolio is on [Fire].” Previously, Davies bid farewell to the collection, posting “Farewell sweet Goose” at the auction’s beginning.
However, fellow co-founder Su Zhu seemed less enthused, sharing, “Sent a few of them the Sothebys auction results and the response is crickets,” in response to journalist inquiries about the liquidity of the NFTs. Zhu had previously quoted English poet, Alfred Tennyson, stating, “[Tis] better to have loved and lost than to have never loved at all,” reflecting on the sale.
The NFTs up for auction were recovered by liquidators of 3AC following the hedge fund’s bankruptcy filing in July 2022. At its peak, 3AC boasted an estimated $10 billion in assets under management. Still, the ongoing cryptocurrency bear market dealt a severe blow to the firm, leaving it owing creditors $3.5 billion. Bankruptcy proceedings for 3AC are currently ongoing.
Su Zhu recently obtained a restraining order against BitMEX co-founder Arthur Hayes, one of 3AC’s numerous creditors, with a reported claim of $6 million. Meanwhile, Kyle Davies appears to have taken a different path, venturing into the culinary arts by opening a restaurant in Dubai.
Davies and Zhu are also the founders of the OPNX exchange, a platform specializing in trading claims of fallen crypto firms like 3AC. However, the exchange received a reprimand from Dubai regulators earlier this month for allegedly failing to register in the emirate.
The auction’s successful outcome underscores the continued fascination and value attached to NFTs, even in the wake of financial setbacks experienced by prominent cryptocurrency entities. As the market evolves, the fate of 3AC and its co-founders remains uncertain, but this auction may serve as a glimmer of hope amid their ongoing challenges.
