WOO co-founder Jack Tan said the repurchase allows the company to move on “without further distractions from the 3AC fallout”.
WOO Network has announced its decision to repurchase shares and tokens it sold to defunct Singaporean hedge fund Three Arrows Capital (3AC) back in 2021. The Taiwan-based trading platform and liquidity provider said in a press release that it has reached an agreement with Teneo, 3AC’s liquidator.
The press release states that WOO has agreed to cancel the shares 3AC bought during a Series A funding round. It will also repurchase 20 million WOO tokens, currently worth about $3.4 million. Reportedly, the tokens have now been sent to a burn address. WOO did not reveal the total value of all the tokens and shares. Also, while WOO raised $30 million in its Series A round, the exact investment from 3AC is unknown. 3AC was the round’s largest investor.
WOO Puts 3AC Uncertainty to Rest
WOO co-founder Jack Tan noted in a statement that the company is happy to clear up any misconceptions about its business with 3AC. Tan claimed:
“We are pleased to clear the uncertainty related to 3AC from the WOO 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. We are looking forward to executing our mission without further distractions from the 3AC fallout.”
Tan also added that WOO has done a “thorough cleansing” of its system and is looking forward to working with its team and partners following a “concentration of bad news” in the industry over the last 18 months. According to CoinMarketCap data, WOO is trading at $0.1703 after gaining 0.33% in the last 24 hours but losing 3.46% in 7 days. The WOO token has lost more than half of its market capitalization in the last six months.
3AC’s Troubles
Last June, a British Virgin Islands court ordered the liquidation of 3AC. Shortly after, the company filed for Chapter 15 bankruptcy in the US Bankruptcy Court for the Southern District of New York. Authorities in Singapore had accused 3AC of providing false information and also crossing its asset threshold.
3AC co-founders Su Zhu and Kyle Davies seemingly went into hiding and were not seen for a while. It later became evident that the hedge fund owed $3.5 billion to more than 25 different companies. Creditors argued that the company’s management could no longer be trusted and had asked the British Virgin Islands court to order a liquidation. At its peak, 3AC managed more than $10 billion worth of funds. However, several events, including a disappointing investment in Luna, forced 3AC into insolvency.
Furthermore, filings from creditors alleged that the co-founders used company funds to purchase several properties, including a $50 million yacht.
Late last month, police in Singapore arrested Su Zhu at Changi Airport as he was trying to leave the country. Teneo had announced that it received a committal order against the co-founder because he did not cooperate with the liquidation investigation. The order was a prison sentence of four months. Teneo added that Davies also received the same order. However, the current whereabouts of the co-founder remains unknown.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
