The crypto hedge fund 3AC (Three Arrows Capital) has just moved most of its NFT collectibles to a single wallet. Its founders Su Zhu and Kyle Davies allegedly moved the assets to avoid court liquidation proceedings. Basically, this could mean the duo will sell the precious NFTs at huge discounts soon.
Why is 3AC moving its precious NFTs?
Three Arrows Capital (3AC), one of the most successful crypto hedge funds, moved its impressive NFT collection to the same digital wallet.
Meanwhile, the group’s founders Kyle Davies and Su Zhu are hiding to avoid the New York bankruptcy court’s proceedings. Accordingly, the court forced 3AC into liquidation proceedings last month.
Now, creditors are fighting to convince the court into freezing the hedge fund’s treasure. However, its $3 billion fortune comes in crypto, NFTs, and cash. Considering the uncertain laws in the NFT and crypto sphere, the issue is even more delicate.
Apparently, it also makes it easier for Zhu and Davies to protect their assets. For instance, the 3AC duo used their account Starry Night Capital to move most of their NFTs into a single wallet.
The transfer process had begun on June 14th. During the same time, news surfaced that 3AC couldn’t solve its $670M loan margin call.
What does the new 3AC wallet include?
The wallet where 3AC transferred their NFTs is listed as AEB785. Right now, it contains the founders’ outstanding NFT collection worth millions of dollars.
In fact, many of the NFTs included come from the most successful collections to date, DappRadar data shows. Fidenza, Chromie Squiggle, and CrypToadz are just some of the names you can see in the collection. Surprisingly, one of the NFTs is “A Slight Lack of Symmetry Can Cause So Much Pain” by Dimitri Cherniak, worth more than $2M when bought in 2021.
In the new light of events, the NFT community is debating whether 3AC will offer these NFTs at major discounts. After all, the over 400 NFTs are worth less than $3 million in total. All in all, it depends on whether the two founders truly wish to dispose of them or not.
What is 3AC (Three Arrows Capital)?
Three Arrows Capital (3AC) is a Singapore-based crypto hedge fund. The company founded by Su Zhu and Kyle Davis enjoyed plenty of success last summer.
At the time, 3AC tapped into NFTs using a dedicated fund: Starry Night Capital. Accordingly, the team was planning to raise funds to create NFT educational content. Unfortunately, that didn’t happen.
Fast forward to 2022, the founders couldn’t pay off a $670M loan offered by Voyager Digital in May. In fact, Voyager Digital is a crypto broker that filed for bankruptcy in the meantime. This popular move can prevent US creditors to access foreign companies’ assets.
As a result, 3AC filed for bankruptcy at the beginning of July. Right now, both Su Zhu and Kyle Davis are hiding from the New York court and creditors. In addition to their Voyager Digital loan, the duo also have a $270M debt to Blockchain.com.
Reposted from: nftevening.com