According to a report by the Financial Times, Swiss cryptocurrency hedge fund company Tyr Capital Partners is facing disputes and accusations of “criminal mismanagement” following the collapse of cryptocurrency exchange FTX, resulting in losses for its investors. The company has also been subjected to a raid by Swiss prosecutors.
Based on 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 TGT, a fund company that had 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 various companies, including cryptocurrency wealth platform Yield App.
Tyr manages approximately $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 raised concerns about FTX’s financial health to Tyr’s Chief Investment Officer, Hindi, between November 7th and 10th, 2022, just days before the closure of the FTX exchange. However, the document shows that Tyr only attempted to withdraw funds from FTX around November 11th, the day FTX filed for bankruptcy.
In April of last year, TGT also submitted a criminal complaint to Geneva prosecutors against Tyr, accusing them of “criminally mismanaged management” and requesting a “dawn raid” on the company’s offices. According to an insider, the prosecutor conducted a search and seized relevant documents on August 17th of last year. A spokesperson for the Geneva prosecutor’s office stated that the case is still ongoing.
