Swiss authorities are investigating Tyr Capital, a crypto hedge fund, following accusations of disregarding danger warnings related to the bankrupt FTX change earlier than its November 2022 collapse, the Monetary Occasions reported, citing authorized paperwork filed within the Cayman Islands.
In response to the report, the investigations emanated from complaints of “legal” mismanagement lodged by TGT, considered one of Tyr’s shoppers, prompting a raid on Tyr’s places of work by Swiss prosecutors. TGT seeks to shut its account with Tyr and recoup property, together with a $22 million declare in opposition to the bankrupt crypto agency.
Tyr has refuted these allegations, asserting that it operated inside authorized bounds and didn’t mishandle its consumer funds.
Authorized actions
Courtroom paperwork reveal that TGT raised issues about Tyr’s publicity to FTX days earlier than the agency collapsed. Nonetheless, the crypto hedge fund allegedly solely tried to withdraw funds on Nov. 11, coinciding with the day FTX filed for chapter.
TGT escalated issues by submitting a legal criticism in opposition to Tyr in April 2023 with the Geneva prosecutor’s workplace, citing suspicions of misconduct and requesting a search of Tyr’s premises.
As well as, TGT accused Tyr of failing to stick to its danger mitigation measures, citing a breach the place greater than 15% of its property had been held with a single counterparty.
TGT reportedly stated, “There was a critical and demonstrable lack of probity within the conduct of the fund’s affairs,” expressing a lack of belief and calling for an unbiased investigation into Tyr’s operations.
FTX chapter replace
FTX’s chapter proceedings persist, with the failed agency administration abandoning revival plans and opting to liquidate property to refund clients based mostly on the digital asset values on the time of the change collapse in 2022.
The transfer has drawn extreme criticisms from a number of FTX collectors who’re additionally pursuing authorized motion in opposition to the regulation agency Sullivan and Cromwell, LLP (S&C). The collectors alleged the regulation agency was complicit within the change’s downfall by supporting the crypto change in its misleading practices.
