Cryptocurrency Hedge Fund Tyr Accused of Criminal Mismanagement in FTX Bankruptcy Loss Dispute, Previously Investigated by Swiss Prosecutors

Cryptocurrency Hedge Fund Tyr Accused of Criminal Mismanagement in FTX Bankruptcy Loss Dispute, Previously Investigated by Swiss Prosecutors

Cryptocurrency Hedge Fund Tyr Accused of Criminal Mismanagement in FTX Bankruptcy Loss Dispute, Previously Investigated by Swiss Prosecutors

According to the Financial Times, Swiss cryptocurrency hedge fund company Tyr Capital Partners is facing disputes and allegations of “criminal mismanagement” following losses incurred after the collapse of cryptocurrency exchange FTX. The company has also been subjected to a raid by Swiss prosecutors.

According to a legal document seen by the Financial Times, Tyr Capital Partners is accused of disregarding internal risk limits and warnings from investors regarding its exposure to FTX. The lawsuit has been filed by investment firm TGT, which previously invested with Tyr and is currently attempting to liquidate its investment portfolio and control remaining assets, including a $22 million debt claim against FTX. TGT’s investment funds come from multiple companies, including cryptocurrency wealth platform Yield App.

Tyr manages around $140 million in assets and has profited from trading token price differentials, such as Bitcoin and Ethereum, in recent years. The company has reportedly refuted the accusations made by TGT.

TGT, which was previously raided by Swiss authorities, claims in the legal document that it expressed concerns about the financial health of FTX to Tyr’s Head of Investments, Mr. Hindi, between November 7th and 10th, 2022, just days before the collapse of the FTX exchange. However, documents show that Tyr only attempted to withdraw funds from FTX around November 11th, the day FTX filed for bankruptcy.

Last April, TGT also submitted a criminal indictment against Tyr to the Geneva prosecutor, accusing the company of “criminal management offenses” and requesting a “dawn raid” on its office. According to an insider, the prosecutor conducted a search and seized relevant documents on August 17th last year. A spokesperson for the Geneva prosecutor’s office stated that the case is still ongoing.