Three Arrows Capital (3AC) liquidators are seeking to recover $1.3 billion from the hedge fund co-founder, according to a person familiar with the claim, Bloomberg reported. Liquidators discussed the charges against Three Arrows Capital co-founders Su Zhu and Kyle Davies at a meeting with creditors on Tuesday. Su Zhu and Kyle Davies are accused of causing 3AC to take on significant leverage between May and June 2022, after 3AC had already suffered huge losses on Luna tokens and other investments. Liquidators believe the company is insolvent and are now taking action against Su Zhu and Kyle Davies in the BVI courts to recover those losses for the company's creditors.