WOO Network has declared its intent to reclaim both the tokens and equity previously in the possession of the now-defunct hedge fund, Three Arrows Capital.
In a decisive move, the crypto trading platform, WOO Network, is cutting all remaining ties with the insolvent Three Arrows Capital (3AC). This separation follows a resolution to reacquire shares and tokens that were previously under the ownership of the cryptocurrency hedge fund.
As per a blog post dated October 11, WOO has reached an agreement with Teneo, the firm responsible for overseeing the liquidation of 3AC’s assets. This agreement involves the purchase of more than 20 million WOO tokens and additional shares that 3AC had acquired during WOO’s Series A funding round in November 2021.
WOO’s co-founder, Jack Tan, expressed, “We are delighted to remove the uncertainties linked to 3AC from the WOO ecosystem. We actively collaborated with the liquidators to secure a fair transaction to repurchase our shares and both vested and vesting tokens from 3AC’s estate.”
WOO has negotiated this repurchase of shares and tokens at an appealing discount, a strategic move to sever all lingering connections with the collapsed hedge fund and its creditors.
Furthermore, as part of the agreement, WOO has committed to nullify 3AC’s shares and enhance the ownership stakes of all other shareholders proportionally to the canceled shares.
Adding to the complexity of the situation, WOO has announced that the 20 million tokens it repurchased will be permanently removed from the circulating supply by sending them to a burn address.
Jack Tan summed up the situation, saying, “The past 18 months have witnessed our industry facing an onslaught of adverse developments, from significant failures to increasingly vigilant regulators. A thorough cleansing of the system has occurred, and we now look forward to rebuilding with our partners and team.”
It’s worth noting that Three Arrows Capital was the principal investor in WOO’s fundraising round in 2021, acquiring 25 million WOO tokens and equity in the cryptocurrency exchange. Unfortunately, the crypto hedge fund met its demise in July 2022 after making a series of colossal, highly leveraged bets on Do Kwon’s Terra ecosystem, which had already tumbled in May, just two months prior.
This repurchase agreement is unveiled less than a fortnight after the arrest of Su Zhu, one of 3AC’s co-founders, in Singapore. Zhu will spend the next four months behind bars in Singapore for failing to comply with a local court order.
The liquidators of Three Arrows Capital, Teneo, have stated that while Zhu serves his sentence, they will actively engage with him on matters pertaining to 3AC, focusing on the recovery of assets that rightfully belong to the hedge fund or have been acquired using 3AC’s funds.
