Last year, Three Arrows Capital filed for bankruptcy.
Three Arrows Capital invested into the seed round for Rook in 2020.
There are theories that Zhu Su, Kyle Davies and Kyle Davies may have done a fundraise of $25 million.

The liquidity protocol Rook, which was backed by Three Arrow Capital (3AC) has seen a surge in activity. Its native token, ROOK, saw its price jump to $16.38 per daily. ROOK traded at $15.33 at press time, an increase of 13.22%.

The surge in activity comes against the backdrop of speculations that Three Arrows founders have completed a $25 million fundraising to build “an exchange to trade bankruptcy claims.” This comes after DeFi researcher Ignas tweeted.

1/12 Kyle Davies reached me after seeing this tweet.

It’s done.

But they won’t disclose who are the investors – as most exchanges don’t.

He explained the workings of the tokenomics, collateral system and exchange.🧵 https://t.co/A43gKBMjz0

— Ignas | DeFi Research (@DefiIgnas) March 7, 2023

Rook has a 3AC relationship

Three Arrows Capital invested $2.5 million in KeeperDAO’s seed round, which was renamed to Rook Protocol.

For those who don’t know Rook Protocol, it is a maximum extractable value (MEV) marketplace on Ethereum. Its primary purpose is to redistribute valuable that is often ignored by predatory trading platforms or miners. 3AC co-founder Zhu Su at the time when 3AC invested in KeeperDAO’s seed round said that the protocol could keep liquidation on Ethereum “efficient” while allowing participants to earn.

Data from Defillama Rook currently holds $5 million of total value locked (TVL), far below its 2021 peak of $606million. This is due in part to the 2022 crypto snow, which was caused by the many collapses of crypto companies that began with the fall of Terra (LUNA), a $60 billion ecosystem.