Taipei-based crypto exchange WOO repurchased its shares and tokens from Three Arrows Capital (3AC).
WOO Network, a Taiwan-based liquidity provider, successfully recouped shares and tokens sold to the now-bankrupt crypto lender Three Arrows Capital. WOO agreed to a deal with 3AC’s liquidators, Teneo, to repurchase 20 million WOO tokens it sold to 3AC in 2021.
20 Million WOO Tokens Sent to a Burn Address
The WOO Network said in an announcement that in an “equitable solution to all shareholders, WOO agreed to cancel 3AC’s shares and increase the ownership of all other shareholders proportionally. Additionally, the 20M tokens repurchased by WOO will be sent to the burn address.”
The bankrupt crypto lender was WOO’s largest investor in its 2021 Series A fundraising round, as it bought equity and 25 million WOO tokens.
Jack Tan, co-founder of WOO, said the platform is pleased to clear any uncertainty relating to 3AC:
“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.”
After securing the assets at a discount, the crypto exchange recouped the shares and tokens from 3AC. The move ends WOO’s remaining link with 3AC and its creditors.
Commenting on the significance of the repurchase, Jack Tan said:
"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."
3AC Co-Founder Arrested
The news of WOO’s repurchasing effort comes soon after Su Zhu, one of 3AC’s founders, was arrested by authorities in Singapore. Teneo broke the news after Zhu was apprehended at Singapore Changi airport as he attempted to flee the country. Zhu faces a four-month prison sentence.
Davies and Zhu Banned from Participating in Regulated Activities
Zhu and 3AC co-founder Kyle Davies were recently banned by the Monetary Authority of Singapore (MAS), from participating in regulated activities or serving as top executives at any financial firm in Singapore for the next nine years.
The regulatory ban against Davies and Zhu is an issue, considering the duo recently launched their new crypto venture, OPNX.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
