Reports said that 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.
It has been reported that Starry Night Capital was founded last year by Su Zhu, 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.
However, blockchain data provider Nansen on October 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.
The report said that Nansen said the NFTs previously collected by Starry Night Capital is 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 that the Starry Night Capital collection’s total value sits at around $35 million.
Likewise, 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.
That sum accounts for only a tiny fraction of the 3AC’s debt to its creditors, which amounts to at least $2.8 billion. The NFT transfers came almost four months after Starry Night Capital’s main crypto wallet moved almost all of its digital tokens to a new address.
Thus, the Singapore-based crypto hedge fund 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 July 1 in a New York court.