Gondi created a private loan for PUNKS tokens ahead of the 16 CryptoPunks auction. It was done so Gfunk (a Gondi Advisor) could borrow ETH against PUNKS tokens. The collateral used included tokens from the PUNKS staking contract. This enabled Gfunk to get funds to run up the bid.

@fillthenshill @SCOOT_nft (who Gfunk recently tried to pay off with a Core) will have a whole thread with the details.

To be clear, since many seem confused, these staked PUNKS tokens accepted as loan collateral by Gondi, did not belong to Gfunk. That’s really the crazy part about all of this. @2_dot_Zero has alot more details coming soon.