Sotheby’s is preparing to sell a collection of digital art recovered by liquidators unwinding failed cryptocurrency hedge fund Three Arrows Capital Ltd.
(Bloomberg) — Sotheby’s is preparing to sell a collection of digital art recovered by liquidators unwinding failed cryptocurrency hedge fund Three Arrows Capital Ltd.
Auctions and private sales of nonfungible tokens 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 $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 maximize the value of the assets, according to a spokersperson 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.
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