Sounds like they did money laundry using those illiquid NFT. They did it on purpose to move the fund out of 3AC.Source: Reddit
3AC borrowed hundreds of millions from user's deposits through custodial agents like Voyager and BlockFi, and used it to recklessly gamble on all kinds of ridiculous crypto things, including "CryptoDickButt" NFT.
This is one of the wallets of 3AC, https://etherscan.io/address/0x2e675eeae4747c248bfddbafaa3a8a2fdddaa44b
Which you can see has been drained out of almost every penny except a bunch of illiquid NFT tokens that have no takers.
Proud owner of CryptoDickButt 1462
Some other priceless (rather worthless) NFTs that 3AC curated include Slacker Duck Pond, Gutter Cat Gang, Gutter Punks etc.
On other 3AC wallets including a NFT fund known as "Starry Night Capital", they have many more illiquid NFTs including "Shiboshis" which they bought for almost $10k each. Infact till April, they were buying up all the junk NFTs using the funds borrowed from retail investors via Voyager, BlockFi, and any other centralised lender that was happy to lend to them.
They bought this one for 800 eth worth over $2m at the time, and another one called "Arnolfrini Shrimp" for $130k!
The fact that these companies like Voyager kept lending out their customer's deposits to 3AC, who then used it to gamble degenerately on useless NFTs is utterly bewildering. Didnt they have any internal controls that would point out that the funds are being diverted to NFTs, when the bear market had already started?
3AC borrowed millions from Voyager/BlockFi user deposits, and bought CryptoDickButt NFT
- Thread starter orbit23
- Start date
Why not just watch a gay porn instead and get it over with?
Can you elaborate? How will you exactly transfer funds out of the "illiquid" NFT? Also the record will get stamped in the Blockchain ledger, I would think.
guy creates nft.
sells it at stupid price to 3ac.
wallet is known but owner is anonymously owned by guy.
guy runs away with money.
With mission impossible music in background, guy rips off mask to reveal he’s 3AC CEO.
It reminds me of the pump and dump schemes used by traders in 1920s before the creation of the SEC. They would sell it back and forth to each other until a stock reached absurd levels and exit with huge profits leaving the public holding the bag.
its detailed in reminiscence of a stock trader. He gets otm call options, and it’s his job to make them in the money.
there is no conspiracy theories. They literally took money from investors plus took margin loans on top of that and went full degen mode. They bought stupid NFTs and lost the rest on leveraged bets.
Investors thought it was a professional trading/investment firm, when it was actually just 2 high-school degen friends.
Investors thought it was a professional trading/investment firm, when it was actually just 2 high-school degen friends.