Crypto hedge fund Tyr Capital is embroiled in a contentious
dispute with one of its clients regarding its exposure to the bankrupt digital
assets exchange FTX.
Tyr Capital stands accused of “criminal”
mismanagement by one of its clients, TGT, prompting a Swiss prosecutor to raid
Tyr’s offices. TGT is now seeking to close its account with Tyr and recover
remaining assets, which includes a substantial $22 million claim against FTX, as
reported by the Financial Times on today (Tuesday).
The collapse of FTX, once hailed as a leading player in the
crypto industry, traces back to 2022 following a damning report by CoinDesk.
The report detailed how FTX and its sister company, Alameda Research, allegedly
manipulated reserves using their native FTT token. The fallout led to the
demise of Sam Bankman-Fried’s multi-billion dollar empire and cast a pall over
the crypto market for months.
TGT alleges that it had voiced concerns about FTX between
November 7, 2022, and November 10, 2022. However, Tyr Capital, led by former
Deutsche Bank executive Edouard Hindi, only withdrew assets from FTX on the day
the exchange filed for bankruptcy, according to a court filing cited in the
report.
Tyr Capital Denies Allegations of Mismanagement
Moreover, TGT, which manages investments from various
companies including crypto platform Yield, claims that Tyr Capital disregarded
an internal risk requirement limiting exposure to any single party to 15% of
assets. Tyr Capital has refuted these allegations, as outlined in the Financial
Times report. The collapse of FTX has sent shockwaves
through the crypto industry, impacting numerous companies directly or
indirectly exposed to the exchange.
Crypto hedge fund Tyr Capital is embroiled in a contentious
dispute with one of its clients regarding its exposure to the bankrupt digital
assets exchange FTX.
Tyr Capital stands accused of “criminal”
mismanagement by one of its clients, TGT, prompting a Swiss prosecutor to raid
Tyr’s offices. TGT is now seeking to close its account with Tyr and recover
remaining assets, which includes a substantial $22 million claim against FTX, as
reported by the Financial Times on today (Tuesday).
The collapse of FTX, once hailed…
