Sotheby's Second 3AC NFT Auction Includes Landmark Dmitri Cherniak Work

Sotheby's is set to auction off more non-fungible tokens (NFTs) seized from bankrupt crypto hedge fund Three Arrows Capital (3AC), bringing high-value NFTs like Dmitri Cherniak's Ringers #879 (often referred to as "The Goose") out from the vault for the first time since 2021.

The second sale of 3AC collectibles from the "Grails" collection will be held in New York on June 15 and will feature 37 works from generative artists like Dmitri Cherniak, Tyler Hobbs, Jeff Davis and more.

In a press release, the auction house said that the sale will mark the largest-ever live auction of digital art.

"For the live auction, we specifically wanted to focus on showcasing generative art, and the sale was curated to reflect not only the collection’s deep holdings of some of the most sought-after and renowned generative artists in the movement, but also to spotlight the wider community of artists pushing the boundaries of the algorithm-based art," Micahel Bouhanna, Sotheby's head of digital art and NFTs, told CoinDesk.

Highlights from this batch of NFTs include Cherniak’s Ringers #879, a seminal generative artwork that has become known as "The Goose" for its resemblance to the bird. The collectible was purchased by 3AC co-founders Su Zhu and Kyle Davies in August 2021 for about 1,800 ETH – worth roughly $5.8 million at the time.

Bouhanna called this piece a major highlight of Cherniak's portfolio and "one of the most significant works from the generative art movement."

"What makes it so special is the unique variation caused by the randomness of its generation, creating the goose-like image at the center, and perfectly encapsulating the realm of possibilities inherent in algorithmic art," he explained.

In addition, Hobbs’ Fidenza #216, a swirling, colorful piece that last sold for 320 ETH (about $1 million) in 2021, will be made available for purchase.

The upcoming auction follows a successful first NFT sale earlier this month, which brought in over $2.4 million, including another Hobbs' Fidenza NFT that sold for over $1 million, far exceeding its estimated sale price. Teneo, 3AC's liquidator, published a notice in February outlining its intent to sell an expansive list of NFTs estimated to be worth millions after the Singapore-based hedge fund filed for bankruptcy in July.

According to the press release, another group of works from the Grails collection was also recently sold privately for a combined total of over $3 million. So far, the Grails collection liquidation sales have brought in more than $6 million.