WOO Network, a prominent crypto exchange, is set to completely disengage from the bankrupt Three Arrows Capital (3AC) after reaching a settlement to repurchase tokens and shares previously owned by the crypto hedge fund.

WOO Network secured a deal with Teneo, the entity overseeing the liquidation of 3AC's assets, to acquire over 20 million WOO tokens and additional shares obtained during a series A funding round in November 2021.

This repurchase, done at a discount, effectively ends any remaining connections with the collapsed hedge fund and its creditors.

As part of the agreement, WOO will also cancel 3AC's shares and redistribute ownership to other shareholders accordingly.

Furthermore, the 20 million repurchased tokens are slated for permanent removal from the circulating supply.

WOO's move marks a step in moving forward after a period of industry turbulence.

Woo Co-Founder Jack Tan said in a statement:

"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,”

Speaking about the importance of the repurchase agreement, Jack Tan added:

"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."

3AC's Su Zhu Arrestment

3AC emerged as the leading investor in WOO's fundraising round in 2021, acquiring a substantial 25 million WOO tokens along with equity in the crypto exchange.

However, the crypto hedge fund met its downfall in July the following year, following a string of ambitious, highly-leveraged investments in Do Kwon's Terra Money ecosystem, which had already experienced a crash two months earlier in May.

Notably, this repurchasing agreement arrives within a fortnight of the arrest of Su Zhu in Singapore.

Su Zhu now faces a four-month incarceration in a Singaporean prison for his non-compliance with a local court order.