Bankrupt Hedge Fund’s NFTs To Be Sold For Creditors

Liquidators say they will sell Non-fungible tokens (NFTs) owned by Three Arrows Capital (3AC) to recover funds for creditors. The plan is to sell select NFTs beneficially owned by the company to realize their value for liquidation purposes.

The notice states that the sale must begin within 28 days of this announcement and no later than March 23, 2023. The farmer stated that the NFT sale is unrelated to the Starry Night Portfolio. The portfolio is currently undergoing legal proceedings in the British Virgin Islands.

Teneo was appointed the liquidator for a collapsed crypto hedge fund in Jun 2022. A court in the British Virgin Islands made this appointment. According to reports, 3AC owes over $3.5 billion in unsecured claims to its creditors. Meanwhile, 3AC’s two founders, Su Zhu, and Kyle Davies have launched a new platform for trading in crypto-related bankruptcy claims.

Open Exchange has opened its waitlist for interested users who want to put their claims up for sale.

The former CEO of the bankrupt crypto hedge fund, Zhu, stated that he and Davies have an obligation to advance crypto. They want to use the pain and lessons learned from their previous company’s implosion to build something new. However, many commentators question their qualifications to launch a new crypto-focused venture.

Zhu’s Misguided Strategy

Su Zhu acknowledged that 3AC made huge bets on cryptocurrency prices that didn’t pan out. Despite this, the collapse of the FTX crypto exchange presented an opportunity to introduce a new sale with an excellent trading UI to the market. Despite the founders’ failed strategy, Open Exchange aims to capitalize on lessons learned to advance the industry. 

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Industry insiders still determining whether the founders are qualified to launch a new crypto venture after their previous company’s implosion, which significantly dragged crypto prices to new lows, have caused skepticism about Zhu’s declaration.

In conclusion, responsible investing and strategic planning in the volatile crypto market are highlighted by the sale of 3AC’s NFTs and the launch of Open Exchange. As crypto gains momentum, it is essential to make informed decisions and learn from past mistakes to avoid devastating consequences.

The author’s views are for reference only and shall not constitute investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing

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