Sotheby’s to auction seized 3AC’s NFT collection

Popular auction house Sotheby’s will be selling an “unparalleled collection” of non-fungible tokens (NFTs) that was acquired by bankrupt crypto hedge fund Three Arrows Capital and later seized after the company collapsed. 

Sotheby’s is set to auction a digital art collection called “Grails”, which features “some of the rarest and most important works” from notable NFT artists, as stated in a press release. The artworks in the collection will be offered globally via live auctions, private sales, and other sales channels throughout 2023. 

According to Sotheby’s, seven NFTs from the Grails collection would be scheduled for auction at its Marquee Sale Week on May 19 in New York. They include Zombie CryptoPunk #6649 from Larva Labs, Chromie Squiggle #1780 by Snowfro, Ringers #879 (or the “Golden Goose”) by Dmitri Cherniak, Fidenza #725 by Tyler Hobbs, and Autoglyphs. 

“This expansive collection marks an important moment in the rise of generative art on the blockchain in 2021, and was guided by the 3AC ethos of acquiring some of the highest quality and rarest works available on the market.”

Sotheby’s Head of Digital Arts and NFTs, Michael Bouhanna

The collection, which was acquired by the defunct Singapore-based crypto hedge fund Three Arrows Capital or 3AC, was later seized by liquidators after the firm collapsed. Teneo, an advisory company in charge of 3AC’s liquidation, said in February 2023 that it was planning to sell the crypto hedge fund’s NFTs, which were said to be worth $22 million. 

Meanwhile, Teneo said the sale did not include NFTs in Starry Night Capital’s portfolio, which is under “application before the Eastern Caribbean Supreme Court in the High Court of Justice in the British Virgin Islands.” According to a statement from Teneo regarding the latest auctioning, the liquidators chose Sotheby’s for the NFT auction to “maximize the value of the assets.”