Teneo, the liquidation entity taking care of the Three Arrows Capital (3AC) bankruptcy process, reported its custody over the NFTs transferred from addresses associated with Starry Night Capital, a fund launched by the co-founders of the now-bankrupt hedge fund. 

Specifically, as revealed by Three Arrows Capital, the collection transfer was reportedly included in the scope of the liquidator’s duty to determine assets, as well as achieving maximum recovery level on behalf of all creditors. 

Insights from a Bloomberg report reportedly casted estimations that the Starry Night Capital collection’s overall value hovers right above the approximate $35 million. It represents only a tiny fraction of the 3AC’s debt of $2.8 billion to its creditors.

“We would like to make clear that VVD [pseudonymous NFT collector Vincent Van Dough] has cooperated with the JLs [Joint Liquidators] in an effort to protect the value of these assets for the benefit of all relevant stakeholders and has sought to ensure that no Starry Night Portfolio assets would be disposed of improperly, or without sanction of the BVI Court if required.”

VVD was further willing to offer assistance to the eventual sale of 3AC NFTs, with a high likelihood of keeping an oversight on the assets’ disposal with the firm, per Teneo. 

Last year, 3AC co-founders Su Zhu, Kyle Davies, and pseudonymous NFT collector Vincent Van Dough (DVV) jointly established Starry Night Capital, a nonfungible token-centric fund that, in the start, worked towards the primary goal of making investments solely in “the most desired” NFTs.

In August 2022, Teneo was chosen to be in charge of the liquidation firm in the 3AC case. The Singapore-headquartered hedge fund declared bankruptcy after the fall of the Terra ecosystem in early 2022. 

The firm, which used to possess more than $10 billion in assets under management, eventually filed for a Chapter 15 bankruptcy on July 1 in a New York court.