Tyr Capital, a cryptocurrency hedge fund, is at odds with one of its clients over its holdings in the defunct digital asset exchange FTX, according to a Financial Times story published on Tuesday.
According to the story, Tyr’s offices were seized by a Swiss prosecutor, and one of its clients, TGT, accused Tyr of “criminal” mismanagement. TGT’s current goals include terminating its relationship with Tyr and obtaining the remaining assets, which include a $22 million lawsuit against FTX.
The cryptocurrency industry’s darling, FTX, fell apart in 2022 as a result of a thorough investigation that revealed how the exchange and Alameda Research, a sibling business, had manipulated reserves using their native FTT coin. A series of bankruptcies and a year-long winter for the cryptocurrency market resulted from the eventual collapse of FTX founder Sam Bankman-Fried’s multibillion dollar empire. Many businesses that were either directly or indirectly exposed to FTX were damaged by its failure.
According to TGT, between November 7, 2022 and November 10, 2022, it voiced concerns about FTX. But the report, which cited a court filing, said that Tyr, headed by former Deutsche Bank executive Edouard Hindi, only removed the assets from FTX on the day it filed for bankruptcy.
Tyr was accused of disobeying an internal risk requirement that limited exposure to 15% of the assets by TGT, which invests capital from other businesses, including the cryptocurrency platform Yield. According to the report, Tyr has refuted the allegations made by TGT.