Three Arrows Capital liquidator Teneo moved Starry Night Capital's NFTs

Advisory firm Teneo, the liquidator of bankrupt crypto hedge fund Three Arrows Capital (3AC), moved Starry Night Capital's more than 300 NFTs yesterday.

In a statement shared with The Block on Wednesday, Teneo said, with the cooperation of pseudonymous NFT collector VincentVanDough (VVD), it is now in possession of certain Starry Night Capital NFTs — and that the rest are being transferred to it.

Starry Night Capital, an NFT investment fund, was launched in August 2021 by VVD and 3AC founders Su Zhu and Kyle Davies. Yesterday, for the first time in four months, Starry Night’s address witnessed a transfer of more than 300 NFTs — worth 625 ETH (around $840,000) — to a new address.

Teneo said VVD co-operated with the firm "in an effort to protect the value of these assets for the benefit of all relevant stakeholders and has sought to ensure that no Starry Night Portfolio assets would be disposed of improperly, or without sanction of the BVI Court if required."

Starry Night's portfolio includes NFTs from collections such as Rare Pepe, Fidenza, CrypToadz and works from creator XCOPY.

Teneo said it will eventually sell all of Starry Night’s NFTs with the likely help from VVD. "More details about the disposal process will be shared at a later date," it added. Teneo went on to say that if any investor of Starry Night Capital is impacted by the matter, or has questions about the liquidation process, should contact the firm.

Starry Night had planned to raise $100 million at the launch of the fund in August. Roughly $45 million had already been raised by September, VVD told The Block in an interview at the time.

VVD, Zhu and Davies have known each other for over a decade. "I have been friends [with them] on a personal level outside of crypto for ten years now, so I've known them for a long time," VVD said at the time. His role in Starry Night Capital was to curate NFTs and Zhu and Davies handled the rest of the operations.