Taiwan-based liquidity provider WOO Network announced today that it has entered into an agreement with Teneo, the liquidator overseeing the bankruptcy of hedge fund Three Arrows Capital (3AC). As part of the deal, WOO will repurchase shares and tokens previously sold in 2021, WOO said in a statement.
“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,” WOO CoFounder Jack Tan stated.
WOO has agreed to cancel shares acquired by 3AC during the 2021 Series A fundraising round. Additionally, WOO will buy back 20 million WOO tokens, valued at approximately $3.4 million based on current market prices. Notably, these repurchased tokens have been sent to a burn address or a crypto wallet inaccessible to any party.
During its Series A funding, WOO Network successfully raised $30 million, although the specific investment amount from Three Arrows Capital remains undisclosed. Three Arrows Capital faced bankruptcy in July 2021 due to a financial collapse fueled by leverage, coinciding with the broader turmoil in the caused by the collapse of Terra Luna ecosystem. 3AC had significant exposure to Terra Luna.
“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 said. He emphasized that the repurchase of shares and tokens positions the ecosystem for a more focused growth trajectory next year.
