NFTs tied up in Three Arrows collapse to be sold by Sotheby’s

SOTHEBY’S is preparing to sell a collection of digital art recovered by liquidators unwinding failed cryptocurrency hedge fund Three Arrows Capital.

Auctions and private sales of non-fungible tokens ( NFTs ) in the “GRAILS” collection, assembled by Three Arrows mostly in 2021, will kick off next month in New York, according to a statement. Pieces up for grabs include “Chromie Squiggle #1780” by Snowfro and “The Golden Goose” by artist Dmitri Cherniak.

The sales will help raise money to repay Three Arrows creditors owed more than US$3 billion following its sudden collapse last year. Liquidators sifting through the wreckage have been rounding up assets for months, but have repeatedly said the process is impeded by a lack of cooperation from founders Su Zhu and Kyle Davies.

Three Arrows’ liquidators chose Sotheby’s to sell the digital art because they believe the high-end auction house will be able to maximise the value of the assets, according to a spokesperson for Teneo, the consultancy in charge of winding down the hedge fund.

The hedge fund assembled much of its collection near the height of a frenzy for NFTs that has since cooled. BLOOMBERG