Liquidators from Three Arrows Capital are seeking to recoup approximately $1.3 billion from the company’s co-founders, Su Zhu and Kyle Davies, representing the losses allegedly incurred by the duo leading up to the firm's downfall. The co-founders are accused of steering Three Arrows into adopting considerable leverage from May to June 2022, following substantial losses primarily attributed to ill-advised investments in Luna (CRYPTO: LUNA) tokens, among other assets. The failure of Three Arrows Capital had adverse effects on platforms like BlockFi and Voyager Digital Ltd., both of which declared bankruptcy shortly after Three Arrows went into liquidation.