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Tyr Capital, a crypto hedge fund, is embroiled in a conflict with one of its clients regarding its involvement with the now-defunct digital assets exchange FTX, as reported by the Financial Times.
The client, identified as TGT, accuses Tyr of disregarding multiple warnings about its connections with FTX, which eventually declared bankruptcy. TGT alleges that despite receiving several cautionary notices in the days leading up to FTX’s bankruptcy, Tyr withdrew funds from the exchange on the day of its collapse.
Additionally, TGT claims that Tyr violated an internal risk policy by exceeding a 15% exposure limit with a single entity.
The dispute has escalated to the point where TGT has labeled Tyr’s management as “criminal” and has initiated legal action. Swiss authorities have reportedly raided Tyr’s offices in response to the allegations. TGT aims to terminate its relationship with Tyr and recover its remaining assets, including a $22 million claim against FTX.
FTX, previously renowned in the crypto industry, faced downfall in 2022 following revelations in a CoinDesk report about alleged manipulation involving its native FTT token by the exchange and its affiliate, Alameda Research. The subsequent collapse of FTX and its founder’s empire, Sam Bankman-Fried, had widespread repercussions, including bankruptcies and a prolonged downturn in the crypto market.
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