Abstract：Crypto hedge fund Tyr Capital faces a legal clash with client TGT over FTX's collapse. TGT alleges criminal mismanagement, seeking account closure and asset recovery, including a $22 million FTX claim.
Crypto hedge fund Tyr Capital is currently entangled in a dispute with one of its clients regarding its involvement with the now-bankrupt digital assets exchange FTX, as reported by the Financial Times.
One of Tyr's clients, TGT, has levelled accusations of criminal mismanagement against the hedge fund, resulting in a raid on Tyr's offices by a Swiss prosecutor. TGT is now pursuing the closure of its account with Tyr, seeking the recovery of remaining assets, including a $22 million claim against FTX.
FTX, once a prominent player in the crypto industry, experienced a collapse in 2022 following a CoinDesk report exposing the use of their native FTT token for reserve manipulation by the exchange and its sister company, Alameda Research. The subsequent downfall of FTX founder Sam Bankman-Fried's multi-billion dollar empire triggered a series of bankruptcies, contributing to a year-long downturn in the crypto market.
The fallout from FTX's collapse had widespread repercussions for several companies directly or indirectly linked to the exchange.
TGT alleges that it had raised concerns about FTX between November 7, 2022, and November 10, 2022. However, Tyr, under the leadership of former Deutsche Bank executive Edouard Hindi, reportedly withdrew assets from FTX only on the day the exchange filed for bankruptcy, according to a court filing cited in the report.
TGT, an entity that manages funds from various companies, including crypto platform Yield, further claims that Tyr neglected an internal risk requirement limiting exposure to any party to 15% of assets. Tyr, led by Hindi, has refuted TGT's allegations.
Adam Wurf, a representative for Tyr, dismissed the information available to journalists as false and wholly disputed, asserting that there is no valid legal claim that Yield App (TGT LP/GP) can assert against the company.
