Cryptocurrency trading platform WOO Network is working to reach a settlement with the bankrupt Three Arrows Capital (3AC) by repurchasing shares and tokens previously acquired by the cryptocurrency hedge fund. According to a blog post published on October 11, WOO is finalizing a settlement with Teneo, the company handling the liquidation of 3AC's estate.
As part of the settlement, WOO plans to acquire over 20 million WOO tokens along with additional shares that were purchased by hedge funds during WOO's Series A funding round in November 2021. This move aims to remove uncertainty surrounding 3AC from the WOO ecosystem.
Jack Tan, co-founder of WOO, expressed his satisfaction with the settlement, noting that it ensures a fair deal to repurchase shares and vested tokens from 3AC's estate. The repurchase price is said to be attractive, and the agreement will effectively sever all remaining ties to the defunct hedge fund and its creditors.
Furthermore, as part of the transaction, WOO has agreed to cancel 3AC's shares and increase the ownership stakes of all other shareholders proportionally to the canceled shares. In a bid to reduce the circulating supply, WOO plans to send the 20 million tokens it repurchased to a burning address, effectively removing them from circulation forever.
The agreement marks an important step for WOO Network, aiming to move beyond the tumultuous period caused by the closure of 3AC and recent regulatory challenges within the cryptocurrency industry. Three Arrows Capital was a major investor in WOO's 2021 funding round, acquiring 25 million WOO tokens and a stake in the cryptocurrency exchange. However, the hedge fund faced a significant setback in July 2022, after a series of highly leveraged bets on Terra, which had previously collapsed in May.
Less than two weeks before the buyback agreement, Su Zhu, one of 3AC's co-founders, was arrested in Singapore and is set to spend the next four months in a Singaporean jail due to non-compliance with a local court order. As Su Zhu serves his sentence, the liquidators of 3AC intend to engage with him to address 3AC-related matters and recover assets that were either 3AC's property or acquired using 3AC assets.
