Crypto hedge fund Tyr Capital is embroiled in a contentious dispute with one of its clients regarding its exposure to the bankrupt digital assets exchange FTX.

Tyr Capital Faces $22 Million Claim

Tyr Capital stands accused of "criminal" mismanagement by one of its clients, TGT, prompting a Swiss prosecutor to raid Tyr's offices. TGT is now seeking to close its account with Tyr and recover remaining assets, which includes a substantial $22 million claim against FTX, as reported by the Financial Times on today (Tuesday).

The collapse of FTX, once hailed as a leading player in the crypto industry, traces back to 2022 following a damning report by CoinDesk. The report detailed how FTX and its sister company, Alameda Research, allegedly manipulated reserves using their native FTT token. The fallout led to the demise of Sam Bankman-Fried's multi-billion dollar empire and cast a pall over the crypto market for months.

TGT alleges that it had voiced concerns about FTX between November 7, 2022, and November 10, 2022. However, Tyr Capital, led by former Deutsche Bank executive Edouard Hindi, only withdrew assets from FTX on the day the exchange filed for bankruptcy, according to a court filing cited in the report.

Tyr Capital Denies Allegations of Mismanagement

Moreover, TGT, which manages investments from various companies including crypto platform Yield, claims that Tyr Capital disregarded an internal risk requirement limiting exposure to any single party to 15% of assets. Tyr Capital has refuted these allegations, as outlined in the Financial Times report. The collapse of FTX has sent shockwaves through the crypto industry, impacting numerous companies directly or indirectly exposed to the exchange.