Crypto hedge fund Tyr faces allegations of ignoring FTX risk warnings: FT
Switzerland-based cryptocurrency hedge fund Tyr Capital has been accused of mismanagement by investors, who claimed the company ignored early warnings about the collapse of the FTX exchange, according to the Financial Times. It was later searched by Swiss prosecutors.
Tyr ignored warnings about its FTX exposure from TGT, a fund invested in Tyr, and attempted to withdraw assets from FTX only after the exchange filed for bankruptcy in November 2022, the Financial Times reported on Tuesday. Cayman Islands.
TGT claimed that it warned Tyr about the risks associated with FTX between November 7 and 10, 2022, before the exchange collapsed. TGT, whose directors include Yield App co-founders Justin Wright and Jason Corbett, is currently working to reduce its portfolio and gain control of its assets, including its $22 million claim against FTX, according to a FT report.
Tyr did not immediately respond to The Block’s request for comment. Tyr said in media reports that due to the ongoing investigation, he could not comment in detail.
In April 2023, TGT filed a criminal complaint against Tyr with Swiss prosecutors for alleged criminal mismanagement. According to an FT article citing sources familiar with the matter, prosecutors searched the fund manager’s office in August and seized documents.
FTX Full Reimbursement
FTX filed for bankruptcy in November 2022. FTX Attorney Andrew Dieterich told the judge last month FTX plans to repay former customers in full, but has abandoned plans to reopen the exchange.
“That full payment is based on the petition date value of that claim,” the attorney added. “Many of these claims are premised on currencies that have fallen dramatically in value during the turbulent period leading up to the date of the petition.”
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