Business News Report
February 20, 2024

TYR Capital Raided by Swiss Authorities Over Alleged FTX Dispute Mismanagement

In Brief

TYR Capital was raided by Swiss prosecutors for neglecting exposure risks before FTX collapsed, causing Target (TGT) to incur financial loss.

Swiss Prosecutors Raid Crypto Hedge Fund Tyr Capital Partners Over Alleged Mismanagement in FTX Dispute

Swiss prosecutors raided geneva-based cryptocurrency hedge fund TYR Capital for neglecting to assess its exposure risks before the cryptocurrency exchange and hedge fund FTX collapsed, causing Target (TGT), a fund that invested along with Tyr Capital in FTX, to incur losses. According to TGT’s allegations, Tyr Capital Partners is accused of “criminal” mismanagement.

TGT seeks to liquidate and assume control of remaining assets, which involves pursuing a $22 million claim against FTX. However, TYR Capital denies all allegations and asserts that it adheres rigorously to all pertinent laws and its regulatory and contractual obligations.

Additionally, TYR Capital allegedly neglected internal risk requirements that imposed a limit of 15% of assets for exposure to any single counterparty, according to TGT. In the filing in the Cayman Islands, TGT also raised concerns regarding the fund’s independent committee, claiming it declined involvement in the criminal proceedings in Switzerland and allegedly failed to prevent the unjustified depletion of the fund despite no trades occurring since around the time of FTX’s collapse.

TYR Capital has been recognized as a prominent entity in the cryptocurrency hedge fund sector amidst the closure of other funds, such as Three Arrows Capital and Galois Capital. Managing approximately $140 million in assets, the firm has seen profitability in recent years, capitalizing on trading discrepancies in token prices, including Bitcoin and Ethereum.

TGT submitted a criminal complaint in Geneva against TYR Capital last year, alleging the criminal offense of criminal management and requested a “dawn raid” on the fund manager’s offices. Subsequently, a search was conducted, during which the prosecutor seized documents. Edouard Hindi, Chief Investment Officer and Co-Founder of TYR Capital, was summoned to appear before the prosecutor as a person providing information, a status between being a witness and being accused.

The complex legal situation surrounding TYR Capital highlights the ongoing challenges and intricacies within the cryptocurrency sector following the FTX collapse.

Disclaimer

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About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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