“The #1 Tech Opportunity of the Decade”

On February 8th, Luke Lango is making his biggest call of 2023. He’s recommending technology (that you’ve likely never heard of) that could help 122 million people… And mint up to $3 trillion in wealth.

Wed, February 8 at 8:00PM ET
 
 
 
 

Three Arrows Capital Creditors Repossess Company’s NFT Wallet

  • Three Arrows Capital creditors are taking possession of one of the company’s primary assets.
  • Previously, Three Arrows had been attempting to block the court’s access to what remains of the once multi-billion dollar company.
  • An associate of Three Arrows is helping to move the company’s non-fungible token (NFT) portfolio into creditors’ hands.
Three Arrows Capital - Three Arrows Capital Creditors Repossess Company’s NFT Wallet

Source: T. Schneider / Shutterstock.com

The crypto bankruptcy saga continues to unfold before investors. Voyager Digital and Celsius made their own news earlier this week. Today, a third bankrupted crypto company, Three Arrows Capital, is coming into the spotlight. A tense battle between the company and creditors is starting to wind down. Creditors are starting to finally get a handle on the company’s assets with some help from an associate.

Three Arrows is one of the first companies to fall into complete collapse due to the crypto crash. The Singapore-based crypto investing firm had been massively exposed to the Terra (LUNA-USD) ecosystem, whose own demise prompted the broader market plummet. This exposure was a major point of failure when LUNA prices went from $100 to a fraction of a cent. This caused Three Arrows more than $200 million in losses, lots of missed margin calls and ultimately, its bankruptcy.

Owing $3.5 billion to its creditors, the company was forced into Chapter 15 bankruptcy protections. But since the company’s initial filing, things have been anything but smooth. In fact, Three Arrows’ founders have been making things as hard as possible.

Creditors tasked with evaluating Three Arrows’ assets have been denied access to information from the very beginning. On their initial trip to the company’s Singapore office, creditors found the doors locked, a pile of old mail and no sign of founders Zhu Su and Kyle Davies. Meanwhile, accusations continued to pile up that the two had pulled their own money out of the company for personal protection while it imploded. So far, they have not resurfaced.

The company has been making things as foggy and difficult as possible for creditors, obfuscating funds and keeping access to assets away from the court. Though, news today sees the company unable to keep up its defenses.

Three Arrows Capital NFT Wallet Repossessed

Three Arrows Capital and its founders have been quite slippery throughout their bankruptcy hearings. But it seems this week that creditors are beginning to make some headway.

For months now, the company has been blocking access to its “Starry Night” non-fungible tokens (NFTs). Starry Night Capital, the company that distributes the NFTs, was founded as a subsidiary to Three Arrows.

Vincent Van Dough, the pseudonymous entrepreneur that founded Starry Night with Three Arrows, is to thank for creditors’ repossession of the collection. Van Dough had initiated the transaction of the NFTs to a wallet owned by Teneo. Shortly after Three Arrows’ bankruptcy filing, the court granted the creditor group permission to lead Three Arrows’ liquidation.

Van Dough will be helping Teneo with the sale of the assets. While the company spent $35 million on NFTs for its collection throughout 2021, the portfolio is valued now at just $840,000.

The Three Arrows Capital news rounds out a period chock-full of liquidation updates. At the end of September, fellow bankrupted crypto company Voyager Digital announced the end of its own liquidation sale, which saw FTX win an auction for the remaining assets. Earlier this week, Celsius had dates set for the auction of its own remaining assets.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.


Article printed from InvestorPlace Media, https://investorplace.com/2022/10/three-arrows-capital-creditors-repossess-companys-nft-wallet/.

©2023 InvestorPlace Media, LLC