Tyr Capital Partners Accused of Mismanagement
Tyr Capital Partners, a crypto hedge fund based in Switzerland, is facing allegations of mismanagement from an investor. Swiss prosecutors have initiated a search of the firm following claims that Tyr Capital disregarded warnings about the collapse of the FTX exchange.
Legal Action Against Tyr Capital Partners
The allegations against Tyr Capital Partners were made by a hedge fund called TGT, which had invested with the company. TGT claims that Tyr neglected early warnings about the collapse of FTX, leading to an investigation by Swiss prosecutors.
TGT is seeking to liquidate the portfolio and take control of the remaining assets held by Tyr, including a $22 million claim against FTX. TGT alleges that it warned Tyr’s chief investment officer about the financial instability of FTX just days before its collapse.
However, legal documents suggest that Tyr began withdrawing its assets from FTX around the same time as the exchange filed for bankruptcy.
Disputes Over Risk Mandate and Losses
TGT also claims that Tyr disregarded an internal risk mandate, which stated that exposure to any single counterparty should not exceed 15% of assets. However, Tyr argues that an independent committee found no violation of internal regulations.
TGT reported significant losses in its portfolio between January and October of the previous year, but Tyr disputes these claims and says they are false.
FTX Customers Await Reimbursement
While FTX administrators have given up on reviving the exchange, they expect to reimburse customers based on their investments’ value when FTX collapsed in November 2022.
Meanwhile, TGT has filed another complaint with the Geneva prosecutor’s office, alleging criminal management and requesting a raid on Tyr’s offices.
The investigation is still ongoing, and documents were seized during the search of Tyr’s offices in August of last year.
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