Three Arrows Capital fund moves over 300 NFTs to a new address

Starry Night Capital, a nonfungible-token (NFT)-focused fund launched by the co-founders of the now-bankrupt hedge fund Three Arrows Capital (3AC), has moved over 300 NFTs out of its address, according to reports. 

The Starry Night Capital was founded last year by Su Zhu and Kyle Davies, and pseudonymous NFT collector Vincent Van Dough. At the time, the fund planned to exclusively invest in "the most desired" NFTs on the market.

Blockchain data provider Nansen on Oct. 4 on Twitter noted that the NFTs were reportedly shifted from a wallet associated with the fund, including "Pepe the Frog NFT Genesis," which sold for 1,000 Ether (ETH) in October last year, worth $3.5 million at the time. 

Nansen said the NFTs previously collected by Starry Night Capital are moving to a Gnosis Safe address. 

Gnosis Safe is a platform used to manage digital assets on Ethereum, giving users complete self-custody over funds and digital assets.

A report from Bloomberg estimates the Starry Night Capital collection's total value sits at around $35 million.

NFTs previously collected by Starry Night Capital are moving to a Gnosis Safe address.These NFTs include:- Pepe the Frog NFT Genesis, sold for 1,000 ETH (~$3.5M) on Oct 5, 2021- Fidenza #718, sold for 240 ETH (~$1.1M) on Nov 13, 2021Some other notable NFTs below pic.twitter.com/8PU13CqMnn

— Nansen (@nansen_ai) October 4, 2022

It comes months after the Singapore-based crypto hedge fund, 3AC was ordered into liquidation by a court in the British Virgin Islands, leading to the appointment of liquidation firm Teneo, which has gained control of at least $40 million of 3AC assets so far as of an August report from Cointelegraph. 

That sum however accounts for only a tiny fraction of the 3AC’s debt to its creditors, which amounts to at least $2.8 billion.

The NFT's transfers came almost four months after Starry Night Capital's main crypto wallet moved almost all of its digital tokens to a new address. 

The Singapore-based crypto hedge fund, 3AC, became one of the many crypto firms that went bankrupt following the collapse of the Terra ecosystem earlier this year. The company, which once had over $10 billion in assets under management, eventually filed for a Chapter 15 bankruptcy on Jul. 1 in a New York court.