Swiss Prosecutors Raid Crypto Hedge Fund Linked to FTX
Tyr Capital Partners, a crypto hedge fund based in Geneva, Switzerland, recently faced an investigation by prosecutors following a complaint filed by investor TGT. The complaint alleged criminal mismanagement after suffering losses due to the collapse of crypto exchange FTX.
Background on the Investigation
In August last year, Tyr Capital Partners came under scrutiny from prosecutors. TGT, a fund that had invested with Tyr, accused the hedge fund of ignoring internal risk limits and investor warnings regarding exposure to FTX.
The collapse of FTX led to several firms being affected. As more information emerged through lawsuits and bankruptcy proceedings, the situation worsened for Tyr Capital Partners.
TGT’s Allegations Against Tyr
TGT claimed that it raised concerns about FTX’s financial health between November 7 and 10, 2022. However, Tyr’s chief investment officer, Edouard Hindi, disregarded these concerns and only attempted to withdraw assets from FTX. In response, TGT requested a “dawn raid” on Tyr’s offices and is now working towards winding up the portfolio and gaining control over remaining assets.
Tyr’s Response to the Allegations
Tyr Capital Partners stated that they cannot comment on the ongoing investigations in detail but emphasized that they have complied with regulatory and contractual obligations. They believe there is no valid legal claim against them.
Dispute Over Internal Risk Requirement
TGT also accused Tyr of violating an internal risk requirement that limits exposure to any single counterparty to 15 percent of assets. However, Tyr informed the prosecutor that an independent committee found no breach of internal rules.
FTX’s Troubles Continue
FTX’s administrators have been unsuccessful in reviving the defunct exchange and are now selling off assets, including BTC holdings in GBTC, to repay creditors.
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