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WOO Crypto Exchange Resolves Uncertainty with Repurchase of Shares and Tokens from 3AC

TL;DR

  • WOO Crypto Exchange buys back 3AC shares and tokens, signaling a proactive step in crypto industry stability.
  • Su Zhu’s arrest adds complexity to the troubled history of Three Arrows Capital.
  • Industry-wide efforts to clear uncertainty reflect the need for transparency and stability in cryptocurrency.

Singapore In a bid to alleviate uncertainty within the crypto industry, the WOO cryptocurrency exchange has announced its intention to repurchase shares and tokens previously acquired by the now-failed hedge fund Three Arrows Capital (3AC). This decision follows a settlement reached between WOO and Teneo, the liquidator of 3AC, aimed at restoring stability and confidence in the cryptocurrency market.

WOO’s move to repurchase the shares and tokens from 3AC was announced in a statement shared with The Block. The exchange explained that the repurchase was designed to clear up the uncertainty that had arisen due to 3AC’s involvement. The tokens and shares were initially obtained by 3AC as part of WOO’s Series A funding round in November 2021.

The terms of the agreement indicate that WOO plans to increase the ownership of all other shareholders proportionally. The 20 million tokens that have been repurchased will be sent to a burn address, effectively removing them from circulation.

While the exact financial details of the repurchase have not been disclosed by WOO, it marks a significant step in the cryptocurrency market to restore stability and trust.

Three Arrows Capital (3AC) was the largest investor in WOO’s Series A funding round, acquiring both equity and 25 million WOO tokens. The remainder of these tokens were set to vest over a 12-month period. With this repurchase, WOO aims to sever its ties with 3AC and ensure the stability and growth of its ecosystem.

Jack Tan, co-founder of WOO, expressed the importance of this move, stating,

“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.”

Tan also acknowledged the challenges the crypto industry has faced in recent times, saying,

“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.”

Su Zhu’s arrest and 3AC’s troubled history

The path to WOO’s share and token repurchase was marred by the troubled history of 3AC. Last week, photographs emerged showing the arrest of Su Zhu, one of 3AC’s co-founders, at Singapore Changi Airport on September 26. These images highlighted the difficulties that have plagued the once-prominent hedge fund.

Three Arrows Capital, once considered one of the largest hedge funds in the crypto industry, filed for bankruptcy in July 2022. This decision came on the heels of the Terra ecosystem’s collapse in the previous year. At the time of its bankruptcy filing, 3AC owed a substantial sum, estimated to be at least $3.5 billion, to its top creditors.

The move by WOO to repurchase shares and tokens from 3AC reflects a broader effort within the cryptocurrency industry to restore confidence and stability. Recent years have seen a series of challenges, including regulatory crackdowns and the collapse of major players in the crypto ecosystem. This repurchase is seen as a proactive step towards reducing uncertainty and fostering a more stable environment for investors and users of cryptocurrency platforms.

As WOO takes this step to distance itself from 3AC and enhance the confidence of its stakeholders, the broader crypto industry will be closely watching the outcome, hoping that it will contribute to a renewed sense of trust and reliability in the market.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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