WOO Network to Complete Severance from Three Arrows Capital Through Share and Token Buyback
Summary:
Cryptocurrency exchange WOO Network is set to buy back shares and tokens from bankrupt crypto hedge fund, Three Arrows Capital (3AC). WOO has reached an agreement with Teneo, tasked with liquidating 3AC's assets, to purchase 20 million WOO tokens and additional shares. This buyback severs all remaining ties with 3AC. WOO's co-founder, Jack Tan, expressed relief at resolving uncertainties associated with the defunct fund. The 20 million repurchased tokens will be removed from circulation.
WOO Network, a crypto exchange, is finalizing its dissociation from the financially-strapped Three Arrows Capital by arranging a buyback of shares and tokens previously secured by the now-insolvent crypto hedge fund. As detailed in a recent blog post dated October 11, the buyback agreement was achieved in collaboration with Teneo, a company charged with liquifying Three Arrows Capital's assets. Over 20 million WOO tokens and additional shares that the fund obtained in WOO's series A funding round in November 2021 will be bought back.
Jack Tan, a co-founder at WOO, expressed relief over the resolution of the uncertain future stemming from Three Arrows Capital's involvement in WOO's ecosystem. The partnership with liquidators to strike a viable arrangement was key in reclaiming their share and tokens, both vested and vesting, from the fund's estate.
By repurchasing at an attractively lower price, WOO intends to cut off all residual connections with the defunct hedge fund and its creditors. The deal also entails the nullification of 3AC's shares, and in turn, increases the stake of remaining shareholders in alignment with the cancelled shares.
Furthermore, the 20 million tokens that WOO bought back will be shifted into a burn address, eliminating them permanently from the circulating supply. Citing the recent spike in industry-related unwanted news, from major company collapses to regulatory overreach, Tan believes a thorough purging has occurred. He conveyed his eagerness to invigorate and rebuild, led by their team and associates.
This development follows Three Arrows Capital's spectacular downfall last year, after its risky high-leverage bets on Do Kwon's Terra Money ecosystem fell flat. This disastrous decision came to light just two months prior in May. In the 2021 fundraising round, Three Arrows Capital was the most significant investor in WOO, buying 25 million WOO tokens and an equity stake in the cryptocurrency exchange.
WOO's assurance to buy back comes only days after 3AC's co-founders Su Zhu was detained in Singapore. Zhu's four-month incarceration is due to his failure to comply with a local court's order. While Zhu is serving his sentence, Teneo, 3AC's liquidators, intend to discuss with him on issues relative to 3AC, emphasizing the retrieval of assets that belong to 3AC or were acquired using its funds.
Published At
10/12/2023 1:13:39 AM
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