WOO Network to sever ties with Three Arrows Capital after share buyback

Crypto exchange WOO Network is set to sever all remaining ties with bankrupt Three Arrows Capital, after reaching a settlement to buy back shares and tokens previously acquired by the crypto hedge fund.

According to an Oct. 11 blog post, WOO reached a settlement agreement with Teneo — the firm tasked with liquidating the 3AC estate — to purchase more than 20 million WOO tokens and additional shares that the hedge fund had acquired during WOO’s series A funding round in Nov. 2021.

“We are pleased to clear the uncertainty related to 3AC from the WOO ecosystem. We proactively collaborated with the liquidators to secure a fair deal to repurchase our shares and both vested and vesting tokens from 3AC’s estate,” said WOO co-founder Jack Tan.

WOO said the repurchase of shares and tokens is “at an attractive discount” — a move that will sever all remaining ties to the collapsed hedge fund and its creditors.

As part of the deal, WOO also agreed to cancel 3AC’s shares and increase the ownership of all other shareholders in proportion to the canceled shares.

Additionally, WOO claimed that the 20 million tokens it repurchased would be sent to a burn address, removing them from the circulating supply forever.

“The past 18 months have seen a concentration of bad news hit our industry from large-scale failures to more overzealous regulators. A thorough cleansing of the system has taken place and we are looking forward to rebuilding with our partners and team,” Tan added.

Related: Su Zhu’s $36M mansion transformed into eco-farm post-3AC collapse: Report

3AC was the largest investor in WOO’s 2021 fundraising round, purchasing 25 million WOO tokens and equity in the crypto exchange. The crypto hedge fund collapsed in July last year after making a series of outsized, highly-leveraged bets on Do Kwon’s Terra Money ecosystem, which came crashing down two months earlier in May.

The repurchasing agreement comes less than two weeks after Su Zhu, one of 3AC’s co-founders was arrested in Singapore. Zhu will spend the next four months in a Singaporean prison for failing to comply with a local court order.

3AC liquidators Teneo told Cointelegraph that while Zhu is serving time in prison, “liquidators will seek to engage with him on matters relating to 3AC, focusing on the recovery of assets that are either the property of 3AC or that have been acquired using 3AC’s funds.”

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