WOO Network severs 3AC ties with share buyback
3AC was the largest investor in WOO’s $30 million Series A round in late 2021, securing equity and 25 million WOO tokens
connel / Shutterstock, modified by Blockworks
WOO Network has reached an agreement to repurchase the shares and tokens it previously sold to Three Arrows Capital (3AC).
3AC acquired these assets as part of WOO’s $30 million Series A funding round in Nov. 2021.
WOO announced the terms of its deal with Teneo, the liquidator overseeing 3AC’s bankruptcy, in a statement on Wednesday. The arrangement includes canceling 3AC’s shares and proportionally increasing ownership for all other shareholders.
WOO will send 20 million repurchased tokens, valued at about $3.4 million currently, to a burn address, according to the statement.
In late 2021, WOO secured $30 million in a Series A round with support from various companies, including Gate Ventures, QCP Capital and Crypto.com Capital.
3AC emerged as the largest investor in this round, acquiring both equity and 25 million WOO tokens. The remaining tokens were subject to vesting over the next 12 months.
WOO said it repurchased the shares and tokens as it obtained them at a discount, and that it eliminated any remaining ties with 3AC and its creditors.
A WOO spokesperson declined to disclose the details of the equity or purchase price, but told Blockworks it was glad to be past the situation “since the overhang was a potential red flag with many investors and institutions who were unclear on the potential impacts.”
“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,” WOO co-founder Jack Tan said in a statement.
“We are looking forward to executing our mission without further distractions from the 3AC fallout,” he added.
Launched in 2019, WOO Network developed a wide range of products and services that cater to various segments, including retail, institutions and both centralized finance (CeFi) and decentralized finance (DeFi) solutions.
The network integrates CeFi and DeFi services to boost liquidity for participants in the cryptocurrency market.
Shortly after completing its Series A funding round, WOO secured a $12 million funding round in early 2022, with Binance Labs taking the lead.
Co-founders of defunct $10B hedge fund face market activity ban
3AC oversaw about $10 billion in assets as of March 2022, establishing itself as a significant player in the global crypto hedge fund space.
But it went bankrupt in July 2022 due to a mix of crypto market setbacks and a risky trading strategy that drained its funds, leaving it unable to handle debts.
3AC had numerous counterparties that were companies entangled in the firm’s financial struggles.
Both co-founders faced challenges since then, and their decision to keep their whereabouts undisclosed added to their complicated situation.
Singapore ultimately imposed a multi-year market activity suspension on both co-founders Su Zhu and Kyle Davies, effective since Sept. 13.
Last month, Singapore authorities arrested Zhu, and he now faces four months in prison.
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