April 19, 2024
WOO Network decisively cuts ties with insolvent Three Arrows Capital
Latest Cryptocurrency News

WOO Network Severs Ties with Insolvent Three Arrows Capital in Landmark Token Repurchase Deal

WOO Network, the cryptocurrency trading platform, is on the verge of cutting all remaining associations with the insolvent Three Arrows Capital (3AC) following a settlement to repurchase shares and tokens previously held by the cryptocurrency hedge fund.

In an article published on October 11, WOO disclosed that it had reached an agreement with Teneo, the entity tasked with liquidating 3AC’s assets, to acquire over 20 million WOO tokens and additional shares that the hedge fund had obtained during WOO’s Series A funding round in November 2021.

Jack Tan, a co-founder of WOO, expressed this by saying that they are delighted to eliminate the uncertainties linked to 3AC from the WOO ecosystem and have proactively collaborated with the liquidators to secure a fair deal to repurchase the shares and both vested and vesting tokens from 3AC’s estate. WOO further mentioned that the repurchase of these shares and tokens would be conducted at an attractive discount, decisively severing all remaining connections with the collapsed hedge fund and its creditors. As part of the arrangement, WOO also consented to nullify 3AC’s shares and enhance the ownership of all other shareholders proportionally to the canceled shares.

Moreover, WOO affirmed that the 20 million tokens it repurchased would be permanently removed from the circulating supply by sending them to a burn address.

Jack Tan expressed his outlook on the situation by stating that the past 18 months have seen a concentration of negative developments impacting the industry, ranging from major failures to stricter regulatory oversight. A comprehensive cleansing of the system has occurred, and they are eager to rebuild in collaboration with their partners and team. In the 2021 fundraising round for WOO, Three Arrows Capital was the primary investor, acquiring 25 million WOO tokens and equity in the cryptocurrency exchange. Unfortunately, the cryptocurrency hedge fund collapsed in July 2022 after making a series of risky, highly leveraged investments in Do Kwon’s Terra ecosystem, which had already experienced a significant setback in May of the same year.

The repurchase agreement is coming into effect just under two weeks after the arrest of Su Zhu, one of the co-founders of 3AC, in Singapore. Zhu will be serving a four-month sentence in a Singaporean prison for failing to comply with a local court order.

The liquidators of Three Arrows Capital, Teneo, revealed their intention to engage with Zhu concerning matters relating to 3AC during his time in prison. They are primarily focused on the recovery of assets that are either owned by 3AC or have been acquired using 3AC’s funds.

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