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Prosecutors Raided High-Profile Crypto Hedge Fund Linked to FTX Dispute

FTX-linked Tyr Capital Partners raided by Swiss prosecutors as TGT accused the fund of criminal mismanagement
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Prosecutors Raided High-Profile Crypto Hedge Fund Linked to FTX Dispute

Highlights

  • Swiss prosecutor raided FTX-linked Tyr Capital Partners
  • TGT accused with Tyr Capital Partners of criminal mismanagement
  • TGT remaining assets suffered an 84 percent loss

Tyr Capital Partners, a crypto hedge fund based in Geneva, Switzerland, was raided by prosecutors after a criminal mismanagement complaint filed by investor TGT due to losses suffered after the collapse of crypto exchange FTX.

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Swiss Prosecutors Raided FTX-Linked Tyr Capital Partners

One of the highest-profile crypto hedge funds, Tyr Capital Partners, was investigated by prosecutors in August last year, reported FT on February 20. TGT, a fund that invested with Tyr Capital Partners, accused Tyr of criminal mismanagement as it ignored an internal risk limit and investor warnings over exposure to FTX.

The collapse of FTX caused many firms to fall as new information continued to come into light during multiple FTX and Sam Bankman-Fried lawsuits, as well as FTX bankruptcy proceedings.

TGT claimed it raised concerns regarding FTX’s financial health between November 7 and 10 2022. However, Tyr Capital Partners chief investment officer Edouard Hindi ignored their concerns and only tried to withdraw its assets from FTX. TGT requested a “dawn raid” on the fund manager’s offices. TGT currently working to wind up the portfolio and control remaining assets.

“Given there are ongoing investigations as a result of these false claims, we cannot comment in detail as we refuse to prejudice those investigations. There is no valid legal claim that can be asserted as company complied with its regulatory and contractual obligations,” said Tyr Capital Partners.

Also Read: STRK Price: Binance to List Starknet (STRK) and Support Distribution for ETH Staking Users

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Dispute Prolongs as Tyr Refuses Arguments

TGT also argued that Tyr violated an internal risk requirement that limits exposure to any single counterparty to 15 percent of assets. Tyr told the prosecutor that an independent committee didn’t find any internal rules breach, according to the filing.

FT reported that a portfolio containing TGT’s remaining assets suffered an 84 percent loss between January and October last year.

Meanwhile, FTX’s administrators have failed to revive the defunct exchange and selling assets including BTC holdings in GBTC to pay back creditors.

Also Read: Ripple XRP Case Update — Financial, ODL Details Will Remain Sealed Until SEC Remedies Brief

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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