WOO Network Buys Back Shares and Tokens From Bankrupt Three Arrows Capital

The 20 million WOO tokens repurchased from 3AC have been sent to a burn address.

AccessTimeIconOct 11, 2023 at 7:29 a.m. UTC
Updated Oct 11, 2023 at 3:13 p.m. UTC

Taiwan-based liquidity provider WOO Network has agreed to a deal with Teneo, the liquidator of bankrupt hedge fund Three Arrows Capital (3AC), to repurchase shares and tokens it sold in 2021.

According to a press release, WOO agreed to cancel shares purchased by 3AC in 2021's Series A fundraise and repurchase 20 million WOO tokens, worth around $3.4 million at current prices. The tokens have been sent to a burn address or crypto wallet that cannot be accessed by anyone.

WOO raised $30 million in its Series A, although the amount of investment from Three Arrows Capital was undisclosed.

Three Arrows Capital filed for bankruptcy in July 2021 following a leverage-fueled implosion that coincided with the collapse of the $60 billion Terra Luna ecosystem, to which the hedge fund had significant exposure.

"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 co-founder Jack Tan said in a statement.

The WOO token is currently trading at around $0.17, having lost half of its value in the market-wide plunge over the past six months. However, the price remains 10% higher than what it was at this time last year, according to CoinMarketCap.

“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 added.

Edited by Sandali Handagama.


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Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.