Teneo Now Represents Three Arrows Capital For NFT Holdings In Starry Night Capital

Three Arrows Capital, is now bankrupt. (photo: twitter @3arrowscap)

JAKARTA - Teneo, the liquidation firm responsible for the bankruptcy proceedings of Three Arrows Capital (3AC), confirmed in a statement to Cointelegraph on October 5 that it has rights to the NFT transferred from an address associated with Starry Night Capital, a fund launched by hedge fund co-founders who are now bankrupt.

According to the company, the collection step is part of a liquidator's job to identify assets and maximize recovery on behalf of all creditors. A report from Bloomberg estimates that the total value of Starry Night Capital's collection is around $35 million. This represents only a fraction of 3AC's US$2.8 billion debt to its creditors.

"We would like to clarify that VVD [Vincent Van Dough's guise of NFT] has worked closely with JL [Joint Liquidator] in an effort to protect the value of this asset for the benefit of all relevant stakeholders and has made every effort to ensure that no Starry Night Portfolio Assets will be disposed of. improperly, or without sanctions from the BVI Court if necessary," said the Teneo executive.

“VVD has also offered to assist with the sale of NFT 3AC and is likely to oversee asset disposal with the company,” Teneo said.

In 2021, 3AC co-founders Su Zhu, Kyle Davies, and pseudonymous NFT collector Vincent Van Dough (DVV) formed Stary Night Capital, a non-exchangeable token-focused fund that was originally intended to invest exclusively in NFT as "the most desirable".

Last August, Teneo was selected as the liquidating company in the 3AC case. The Singapore-based hedge fund went bankrupt following the collapse of the Terra ecosystem earlier this year. The company, which once had more than $10 billion in assets under management, finally filed for Chapter 15 bankruptcy on July 1 in a New York court.