Starry Night Capital will be forced to liquidate its prestigious NFT collection, which will have an impact on the NFT space.
Three Arrows Capital is on the verge of bankruptcy, but it is still holding onto a multimillion-dollar portfolio of sought-after NFTs.
In early June, rumors circulated online that the troubled crypto hedge fund known as 3AC had failed to meet margin calls on several of its loans, causing concern in the crypto community.
It quickly became clear that 3AC was in the grip of a severe financial crisis, leaving the fund with few options other than drastic restructuring.
On June 27, Voyager Digital served the company with a $665 million default notice.
A British Virgin Islands court then ordered the firm’s assets to be liquidated. Last Friday, 3AC filed for Chapter 11 bankruptcy in New York.
Teneo Restructuring, the firm tasked with liquidating 3AC, is thoroughly investigating the fund’s illiquid assets.
It was widely reported last week that Zhu had privately listed a Singapore property he and his wife had bought for $35 million and assigned to their three-year-old son in December 2021. As liquidators focus on 3AC’s assets, Starry Night Capital, the NFT fund established by the firm’s founders last year, could be the next target.
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