The token of liquidity protocol Rook (CRYPTO: ROOK), has surged by 23% due to speculation that Zhu Su and Kyle Davies, founders of Three Arrows Capital, have completed a $25 million fundraising effort for their bankruptcy claims exchange.

Decentralized finance (DeFi) researcher Ignas fueled the rumors with a tweet about the potential raise.

Rook is an Ethereum (CRYPTO: ETH) based maximum extractable value (MEV) marketplace designed to counter the effects of miners and predatory trading algorithms that tend to extract value from transactions.

Its goal is to redistribute that value and make the liquidation process on Ethereum more efficient while ensuring participants earn a fair return.

Despite its potential, Rook currently has a total value locked (TVL) of around $5 million, which is a significant drop from its 2021 peak of $606 million, according to Defillama.

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ROOK is currently trading at $16.01, but its daily trading volume remains relatively low at $171,000, as per Cryptowatch data.

Before Three Arrows Capital filed for bankruptcy last year, the hedge fund invested in KeeperDAO's seed round, which was later rebranded to Rook.

Su, one of the founders of Three Arrows Capital, commented on the investment, stating that the protocol would make Ethereum's liquidation process more efficient while ensuring participants receive their fair share of returns.

At last check, Ethereum was trading rating up 0.17% in the past 24 hours.

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