Cryptocurrency trading platform WOO Network revealed intentions to buy back its shares from the bankrupt crypto hedge fund Three Arrows Capital (3AC) to clear the uncertainty that has clouded its business due to the company’s collapse.
According to an official announcement, WOO has agreed with 3AC liquidator Teneo to repurchase the shares and tokens at a discount, cutting the remaining link with the failed hedge fund and its creditors.
WOO Network to Buy Back Shares From 3AC
Three Arrows Capital purchased the shares and tokens during WOO’s Series A funding round in November 2021. At the time, 3AC was the trading platform’s largest investor.
While the total value of the shares and tokens to be bought back remain undisclosed, it is known that 3AC purchased equity in WOO along with 25 million WOO tokens. The tokens were set to vest over 12 months after the funding round.
WOO has disclosed that it will send the repurchased 20 million WOO tokens to a burn address while canceling 3AC’s shares and increasing the ownership of other shareholders proportionally.
Commenting on WOO’s repurchase plans, Jack Tan, co-founder of the network, said the exchange is pleased to clear the uncertainty 3AC’s implosion brought to the trading platform’s 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…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.
3AC Founder to Face the Law
As WOO tries to reclaim its integrity in the crypto space, 3AC is still struggling in bankruptcy as authorities attempt to make the hedge fund’s management face the wrath of the law. Towards the end of last month, 3AC co-founder Zhu Su was arrested in Singapore at Changi Airport while trying to leave the country.
A committal order obtained by Teneo due to Su’s refusal to cooperate with the court sentenced him to four months in prison. The same fate awaits the other 3AC co-founder, Kyle Davies, whose whereabouts remain unknown.
Meanwhile, the Monetary Authority of Singapore has banned Su and Davies from getting involved in any local financial or investment businesses for the next nine years.