Sotheby's in New York has sold NFTs belonging to bankrupt crypto hedge fund Three Arrows Capital (3AC) in an auction, with the first lot fetching over $2.4 million. The funds will be used to repay the company's creditors.

The 3AC collection included rare digital artworks, Cryptopunks, a Cryptokitty, and a Bored Ape Yacht Club (BAYC) NFT. Sotheby's will continue to help Teneo offload 3AC's NFT assets in various sales formats across multiple locations globally.

The auction house also announced its intention to expand its own dedicated NFT marketplace and use smart contracts to ensure artists generate resale royalties for every secondary sale.