Taiwanese Exchange WOO Repurchases Shares and Tokens from Three Arrows Capital
The cryptocurrency exchange WOO, based in Taipei, has successfully bought back its shares and tokens from the bankrupt crypto lender Three Arrows Capital (3AC). In a deal with 3AC’s liquidators, Teneo, WOO repurchased 20 million WOO tokens that it had sold to 3AC in 2021.
20 Million WOO Tokens Sent to a Burn Address
As part of an “equitable solution,” WOO agreed to cancel 3AC’s shares and distribute the ownership among other shareholders proportionally. The 20 million tokens repurchased by WOO will be sent to a burn address.
Previously, 3AC was the largest investor in WOO’s Series A fundraising round, buying equity and 25 million WOO tokens. The co-founder of WOO, Jack Tan, expressed satisfaction with resolving any uncertainty related to 3AC and looked forward to focusing on their mission without distractions.
Ending Ties with 3AC
By recouping the shares and tokens from 3AC at a discount, WOO has severed its remaining link with the bankrupt lender and its creditors. Tan emphasized the need for rebuilding after a period of industry setbacks and regulatory challenges.
Arrest of 3AC Co-Founder
The announcement of WOO’s repurchasing effort coincided with the arrest of Su Zhu, one of the founders of 3AC, by Singaporean authorities. Zhu was apprehended at Singapore Changi airport while attempting to flee the country and now faces a four-month prison sentence.
Ban on Davies and Zhu
In addition to Zhu’s arrest, both he and Kyle Davies, the co-founder of 3AC, have been banned by the Monetary Authority of Singapore (MAS) from participating in regulated activities or holding top executive positions at financial firms in Singapore for the next nine years. This ban poses a challenge as they recently launched a new crypto venture called OPNX.
Hot Take: WOO Recovers from 3AC Fallout
WOO’s successful repurchase of shares and tokens from 3AC marks an important step in recovering from the fallout caused by the bankrupt lender. By severing ties with 3AC and addressing uncertainties, WOO can now focus on its mission without distractions. However, the recent arrest of one of 3AC’s founders and the regulatory ban on both founders highlight the challenges they face in their new crypto venture.
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