Cryptocurrency hedge fund Tyr Capital is facing a dispute with one of its clients over its exposure to bankrupt digital asset exchange FTX, the Financial Times reported on Tuesday.
The report said that Ter had been accused of “criminal” mismanagement by one of its clients, TGT, and its offices had been raided by the Swiss public prosecutor. TGT is now looking to close its account with Tyr and recover remaining assets, including a $22 million claim against FTX.
FTX, once the darling of the cryptocurrency industry, collapsed in 2022 after a CoinDesk report showed how the exchange and its sister company, Alameda Research, used its native FTT token to manipulate its reserves. The subsequent fall of FTX founder Sam Bankman-Fried's multibillion-dollar empire led to a series of bankruptcies and a year-long winter for the cryptocurrency market.
The collapse of FTX affected many companies that were directly or indirectly exposed to the exchange.
TGT claimed to have raised concerns about FTX between 7 November 2022 and 10 November 2022. However, Tyr, led by former Deutsche Bank CEO Edward Hendy, only withdrew assets from FTX on the day it filed for declaration Bankruptcy, according to the report. He said, citing the court filing.
TGT, which invests money from other companies, such as cryptocurrency platform Yield, also alleged that Tyr ignored internal risk requirements, limiting any party's exposure to 15% of assets. The report said that Sore denied the allegations made by TGT.
Tyr did not immediately respond to CoinDesk's request for comment, while TGT could not be reached for comment.
