Sotheby’s Auctions First Lot of 3AC NFTs for $2.48 Million
Sotheby’s has sold the first batch of non-fungible tokens (NFTs) from the bankrupt crypto hedge fund Three Arrows Capital (3AC) for a total of $2,482,850. The sale took place in New York, with proceeds directed toward repaying the company’s creditors.
The auction included several high-value generative artworks from the 3AC collection, originally acquired during the fund’s peak in 2021.
Cryptopunks, BAYC, and Fidenza NFTs Among the Collection
Before its collapse in July 2022, Three Arrows Capital had assembled one of the most notable NFT portfolios in the crypto investment world. The collection included rare pieces from artists such as Tyler Hobbs, Dmitri Cherniak, and Joshua Bagley, as well as iconic NFTs like Cryptopunks, a Cryptokitty, and a Bored Ape Yacht Club (BAYC) piece.
The first Sotheby’s sale featured seven generative artworks from Hobbs’ Fidenza project, Cherniak’s Ringers series, and Larva Labs’ early collections including Autoglyph #187 and Cryptopunk #1326.
Sotheby’s described the “GRAILS” collection as “a fascinating exploration of the intersection of art and technology,” showcasing the potential of algorithmic art in the digital age.
Fidenza #725 Sells for $1 Million
The highlight of the auction was Tyler Hobbs’ Fidenza #725, which sold for $1,016,000 — far exceeding its pre-auction estimate of $120,000–$180,000.
Other pieces from the sale also fetched prices above expectations, signaling continued demand for top-tier generative artworks even amid the broader NFT market downturn.
Sotheby’s confirmed that it will continue to assist liquidator Teneo in selling off 3AC’s digital art holdings across multiple future sales. These will include both public auctions and private sales hosted in various global locations.
Sotheby’s Expands Deeper into NFT Market
Since launching its first NFT auction in April 2021, Sotheby’s has increasingly positioned itself as a major player in the digital art and NFT space.
The auction house recently announced the launch of its own NFT marketplace, enabling peer-to-peer sales on Ethereum and Polygon networks. The platform integrates smart contracts to automatically ensure artists receive royalties from secondary sales — a move seen as a direct challenge to platforms like OpenSea.
The Starry Night Collection Still Unsold
While 3AC’s directly owned NFTs are now being liquidated, its separate NFT fund, Starry Night Capital, remains under legal review.
Formed in 2021 in partnership with NFT collector Vincent Van Dough, Starry Night reportedly spent over $21 million acquiring rare artworks before 3AC’s collapse. According to blockchain data from Nansen.ai, the NFTs were transferred to a Gnosis Safe wallet in November 2022, indicating they are secured pending court approval for sale.
The liquidator, Teneo, confirmed that the Starry Night assets remain tied up in legal proceedings in the British Virgin Islands and will only be sold once authorized by the high court.
A Chapter in Crypto’s Art History
The sale of 3AC’s NFT holdings marks a significant moment for both the digital art and crypto industries. It underscores the growing legitimacy of blockchain art in traditional auction settings while illustrating the fallout from one of crypto’s most infamous hedge fund collapses.
