Shalini Nagarajan

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&#8217;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 <a href="https://woo.org/blog/en/woo-successfully-repurchases-shares-and-tokens-from-collapsed-three-arrows-capital">statement</a> on Wednesday. The arrangement includes canceling 3AC&#8217;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 <a href="https://blockworks.co/news/neon-labs-raised-40m-woo-network-closes-30m-nexo-invests-in-texture-capital">secured $30 million in a Series A round</a> 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&#8217;s estate,” WOO co-founder Jack Tan said in a statement.&nbsp;



“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 <a href="https://blockworks.co/news/binance-labs-led-12m-investment-round-for-woo-network">secured</a> a $12 million funding round in early 2022, with Binance Labs taking the lead.



<h2 class="wp-block-heading">Co-founders of defunct $10B hedge fund face market activity ban</h2>



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 <a href="https://blockworks.co/news/3ac-files-for-bankruptcy-as-co-founders-location-unknown">went bankrupt</a> 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&#8217;s financial struggles.



Both co-founders faced challenges since then, and their <a href="https://blockworks.co/news/3ac-liquidators-want-to-subpoena-su-zhu-kyle-davies-via-twitter">decision to keep their whereabouts undisclosed</a> added to their complicated situation.



Singapore ultimately <a href="https://blockworks.co/news/3ac-zhu-davies-securities-violations-monetary-authority-singapore">imposed</a> a multi-year market activity suspension on both co-founders Su Zhu and Kyle Davies, effective since Sept. 13.&nbsp;



Last month, Singapore authorities <a href="https://blockworks.co/news/three-arrows-capital-su-zhu-singapore-arrest">arrested</a> Zhu, and he now faces four months in prison.



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WOO Network severs 3AC ties with share buyback

<div id="highlights-block_634e733b10367" class="highlights">
 <ul>
 <li>Co-founders’ Singapore counsel refused to accept papers on behalf of clients, motion states</li>
 <li>Fund’s investment managers have produced only “piecemeal, selective disclosures”</li>
 </ul>
 
</div>



Teneo, the foreign representative of insolvent crypto hedge fund Three Arrows Capital (3AC), has asked for authorization to serve subpoenas for the production of documents and testimony of co-founders Su Zhu and Kyle Davies through unconventional methods, given that they are “yet to offer any forthright cooperation.”



In <a href="https://reorg-research.com//pdf/4083802.pdf" target="_blank" rel="noreferrer noopener">a motion</a> filed on Oct. 14, they asked a US judge to authorize the issue of subpoenas via the founders’ Twitter pages, their email addresses and the email address of Advocatus Law — the Singapore-based counsel “purporting to represent the founders.”



3AC is <a href="https://cms.blockworks.co/3ac-files-for-bankruptcy-as-co-founders-location-unknown/" target="_blank" rel="noreferrer noopener">seeking protection from creditors</a> in the Southern District of New York under Chapter 15, a process that allows foreign debtors to shield assets in the US.&nbsp;



Earlier court documents allege both Zhu and Davies <a href="https://cms.blockworks.co/3ac-co-founders-remain-silent-creditors-go-to-court/" target="_blank" rel="noreferrer noopener">have been uncooperative</a> with liquidators. And as per the latest development, they still seem to be unwilling to engage.



<h3 class="wp-block-heading">Su Zhu and Kyle Davies non-public locations muddle liquidation process</h3>



Since their whereabouts “remain unknown,” the filing stated, foreign representatives requested Advocatus to accept the papers. But the law firm declined to accept service on behalf of its clients.&nbsp;



Advocatus also previously denied Teneo’s requests for an urgent meeting with the founders. While they did offer an introductory Zoom call, neither Zhu nor Davies spoke despite being asked direct questions, Friday’s motion said.&nbsp;



They have refused to cooperate with the liquidators’ efforts to access 3AC’s books and records in their possession, providing only “meager information” that represents an incomplete list of assets and selective disclosures, the filing added.



If granted, the subpoenas would require 3AC’s founders to produce documents to “identify the existence of, location of, and method of accessing and controlling” company assets.



The foreign representatives have also requested <a href="https://www.solitairellp.com/" target="_blank" rel="noreferrer noopener">Solitaire</a>, the Singapore counsel “purporting to represent” 3AC’s former investment manager, for access to other critical information and believes the firm is withholding relevant valuable information.



“The Investment Managers’ piecemeal, selective disclosures are insufficient and their lack of forthright cooperation has hindered the Foreign Representatives’ ability to perform their duties,” the filing said.



Teneo representatives didn’t comment on the matter beyond the court filing. 3AC, Advocatus and Solitaire didn’t return Blockworks’ request for comment by press time.



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