NFTs owned by bankrupt crypto firm fetch nearly $2.5 million at auction

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May 19 (Reuters) – Auction house Sotheby’s on Friday announced seven non-fungible tokens from bankrupt cryptocurrency hedge fund Three Arrows Capital sold for around $2.5 million.

Among the tokens, “Fidenza #725,” an image with graphic dashes and curves in an understated palette of cream, yellow, pink, and black, fetched the highest price at over $1 million. Three Arrows Capital bought it for 135 ether in 2021, or about $341,786 at the time, according to DappRadar.

The auction was part of the liquidation of Three Arrows, according to a February memo from Teneo, one of the court-appointed liquidators.

Singapore-based Three Arrows was the first major crypto firm to fail in 2022, sparked by the collapse of cryptocurrencies Luna and TerraUSD. She filed for bankruptcy in the British Virgin Islands at the end of June 2022.

The company estimated its assets at around $1 billion at the time, with its vast collection of non-fungible tokens (NFTs) valued at around $22 million, according to a filing viewed by the cryptocurrency news site. The Block.

Non-fungible tokens (NFTs) are a blockchain-based asset that represents ownership of a digital item, such as an image, video, or piece of text.

The NFT market has exploded in 2021, and auction houses like Sothebys and Christies have joined the craze.

But sales volumes and prices have since fallen as demand for speculative assets has cooled.

(This story has been reclassified to remove a foreign word in paragraph 2)

Reporting by Hannah Lang in Washington and Elizabeth Howcroft in London; Additional reporting by Gursimran Kaur Mehar in Bengaluru; Editing by Cynthia Osterman

Our standards: The Thomson Reuters Trust Principles.

Hannah Lang

Thomson Reuters

Hannah Lang covers fintech and cryptocurrency, including the companies driving the industry and the political developments governing the sector. Hannah previously worked at American Banker where she covered banking regulation and the Federal Reserve. She graduated from the University of Maryland, College Park and lives in Washington, DC.

Elizabeth Howcroft

Thomson Reuters

Reports on the intersection of finance and technology, including cryptocurrencies, NFTs, virtual worlds and money that generates “Web3”.

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