NEW YORK - More than 300 non-fungible tokens (NFTs) were moved out of a crypto address associated with Starry Night Capital, an NFT-focused fund launched by the co-founders of now-bankrupt crypto hedge fund Three Arrows Capital.

It is the first time the NFTs have been transferred since the main crypto wallet belonging to Starry Night Capital shifted almost all digital tokens to a new address about four months ago. Blockchain data firm Nansen tweeted on Tuesday that some of the NFTs that moved include Pepe the Frog NFT Genesis, which was sold for 1,000 ether, or about US$3.5 million (S$5 million), on Oct 5, 2021. Ether has since dropped about 62 per cent.

Three Arrows co-founders Zhu Su and Kyle Davies started Starry Night Capital during the height of the NFT craze last year. They have since been sparring with the court-appointed liquidators charged in June with unwinding their assets. Some estimates had placed the value of the collection at US$35 million.

Advisory firm Teneo was appointed by a British Virgin Islands court to liquidate Three Arrows. Bloomberg reported previously that the Singapore High Court granted a petition by Teneo to have greater insight into Three Arrows' remaining assets. Teneo did not immediately respond to a request for comment.

Three Arrows, which operated from Singapore until earlier this year, collapsed after the implosion of the Terra algorithmic stablecoin in May sent cryptocurrencies tumbling.

Mr Zhu and Mr Davies also did not immediately respond to a request for comment on Tuesday. BLOOMBERG