Switzerland-based Crypto Hedge Fund Tyr Capital Accused of Mismanagement
According to the Financial Times, a Switzerland-based crypto hedge fund called Tyr Capital has been accused of mismanagement by an investor. The investor claims that Tyr ignored early warnings about the collapse of the FTX exchange and only tried to withdraw assets after the exchange filed for bankruptcy in November 2022. Legal documents filed in the Cayman Islands reveal that TGT, a fund that invested with Tyr, had warned them about the risks associated with FTX prior to its collapse. TGT is currently working to wind down its portfolio and recover its assets, including a $22 million claim against FTX.
Tyr Capital Under Investigation
Tyr Capital has not responded to requests for comment from The Block. However, they stated in media reports that they cannot provide detailed comments due to ongoing investigations. In April 2023, TGT filed a criminal complaint against Tyr with the Swiss prosecutor for criminal mismanagement. As a result, the prosecutor conducted a search at Tyr’s office and seized documents in August.
FTX Plans to Repay Former Customers
FTX, which filed for bankruptcy in November 2022, plans to repay former customers in full but has decided not to restart the exchange. According to FTX lawyer Andrew Dietderich, the repayment will be based on the values of customers’ claims as of the petition date. However, many of these claims are tied to currencies that experienced significant declines in value leading up to the petition date.
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