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Sotheby's Set to Auction NFT Collection from Bankrupt Hedge Fund 3AC

QUICK TAKE Sotheby's revealed on Wednesday their plans to auction NFTs from the collection of the collapsed hedge fund Three Arrows Capital. The decision to sell the NFTs was announced by 3AC's liquidators in a February court filing.

Sotheby's is slated to auction a selection of high-profile NFTs that were once owned by the defunct cryptocurrency hedge fund Three Arrows Capital. The auction house disclosed that the "multi-part sales series" will commence in May and continue throughout the year.

The "Grails" collection of NFTs features notable pieces such as CryptoPunk #6649 with a zombie theme, Ringers #879 by Dmitri Cherniak, and Fidenza #216 by Tyler Hobbs.

Michael Bouhanna, Sotheby's Head of Digital Art and NFTs, said in a statement, "This extensive collection signifies a crucial point in the emergence of generative art on the blockchain in 2021, and was driven by a philosophy of obtaining the highest quality and rarest works available on the market."

The collection has a controversial history, considering the dramatic ascent and subsequent downfall of its former owner. The hedge fund, once a leading investor in the crypto market, filed for bankruptcy in July, which led to the seizure of the collection. Court documents at the time showed that creditors had loaned billions of dollars to 3AC.

During its heyday, 3AC invested extravagantly in NFTs. The company spent 1,800 ETH, equivalent to roughly $5.6 million, on Ringers #879, commonly referred to as The Golden Goose.

Su Zhu, 3AC's co-founder, tweeted at the time, "Thesis: we like the Goose."

Sotheby's, which began featuring NFTs in 2021, experienced a lukewarm response to its "Oddly Satisfying" auction last month. The highest-selling piece, "Eternity" by artist Anyma, only fetched €50,800 ($55,653), while its estimated closing price ranged between €70,000 and €100,000.

Bouhanna reported that the March auction generated approximately $316,000, with 93% of the pieces sold.

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