Allegations Against Tyr Capital Partners
Swiss prosecutors have conducted a raid on Tyr Capital Partners following allegations of criminal mismanagement related to its exposure to the defunct FTX exchange.
Scrutiny and Legal Action in Swiss
Tyr Capital Partners, a Switzerland-based crypto hedge fund, faces accusations of failing to adhere to internal risk limits regarding its ties to FTX. Legal documents filed in the Cayman Islands reveal concerns raised by investors about the fund’s handling of the situation.
Swiss TGT’s Legal Action
Another hedge fund, TGT, has initiated legal action against Tyr Capital Partners, seeking control of remaining assets. This action includes a $22 million claim against FTX. Despite these claims, Tyr denies any wrongdoing.
Warning Signs Ignored
TGT alleges it warned Tyr’s chief investment officer about FTX’s financial instability days before its collapse. However, Tyr purportedly attempted to withdraw its assets just before FTX filed for bankruptcy.
Criminal Complaint and Investigation
TGT filed a criminal complaint against Tyr with the Geneva prosecutor’s office, citing suspicions of “criminal management.” The investigation is ongoing, according to a spokesperson for the Geneva prosecutor.
FTX’s Bankruptcy
FTX’s collapse in November 2022, with an $8 billion deficit, sent shockwaves through the crypto world. Founder Sam Bankman-Fried faces serious charges in connection with the exchange’s downfall.
The raid on Tyr Capital Partners underscores the growing scrutiny of crypto hedge funds and their exposure to volatile exchanges. Stay tuned for further developments as the investigation unfolds.
