The latest reports involving Three Arrows Capital (3AC) suggest that the company’s liquidators are on the move. They are reportedly in the process of carrying out a huge sale of the seized assets.
Liquidators to Sell NFTs
As per the sources, Three Arrows Capital had a large volume of non-fungible tokens (NFTs) that were frozen as part of the bankruptcy process.
The assets were seized until the bankruptcy court made a decision on the assets belonging to 3AC. Finally, the liquidators dealing with the matter have come up with a way of dealing with the company’s debts.
The company is aiming to make a recovery and as part of the company’s recovery efforts, it is to sell the non-fungible tokens.
It is the liquidators who are responsible for carrying out the sale of the seized non-fungible tokens.
Publication by Teneo
Teneo, the liquidation firm based in New York put in charge of selling the non-fungible tokens made a publication on February 22.
In the Wednesday publication, the company confirmed that it would be overseeing the entire process of selling the non-fungible tokens.
Apart from that, they have been tasked with overseeing the entire liquidation process of Three Arrows Capital.
The officials confirmed that they would proceed with the sale of the non-fungible tokens belonging to 3AC on March 23.
This means that the company now has a three-month time to make the necessary arrangements so the sale can be carried out smoothly.
It is one of the attempts made by the liquidity firm to help the defunct platform return some of the amounts it owes to creditors.
According to recent figures, Three Arrows Capital owes around $3.5 billion to its creditors. It is an enormous amount that the company owes and it may take a lot of time to pay back the entire amount.
Teneo officials revealed that they have been working alongside other major liquidators commonly referred to as “The Joint Liquidators” to deal with the situation.
Their goal is to ensure that they are able to liquidate the NFTs belonging to 3AC without any interruptions or issues.
Once the sale of the NFTs has been finalized, they will be proceeding with the distribution of the funds. They will try to facilitate as many creditors as possible with the proceeds they generate from the NFT sales.
The liquidators have made it clear that they have not added the collection of assets known as the Starry Night Capital fund to the liquidation process.
They will not be selling the assets that fall under the particular fund. The particular collection was under the possession of Vincent Van Dough, a pseudonymous collector, who put together the collection.
Potential Sale of Major Collections
Not many details have been revealed about the sales of non-fungible tokens. Apart from the above-mentioned NFT collections, the liquidators have not revealed the names of any other NFT collections.
However, one of the most prominent research analysts, Tom Wan, who is part of 21.co, has made a claim about the NFT collections.
21.co is the parent company of 21Shares and its analyst, Tom Wan, has made a claim about the potential sale of major NFT collections.
According to his findings, the liquidators may also be looking forward to selling some of the largest non-fungible token collections.
Although the liquidator has not provided any specifics, Wan has revealed that the liquidators may sell a few collection items from Mutant Apes as well as Bored Ape.
In addition to that, the liquidators may also proceed with the sale of the CryptoPunks.
According to an estimate, the NFTs that the liquidators are aiming to sell would be somewhere around $21 million.
It was in July of 2022 when the 3AC was left with no option but to file for bankruptcy. It had to take this step because it ended up facing a major financial crisis due to the downfall of Terraform Labs.