Crypto hedge fund Tyr Capital faces a dispute with a client over losses from the collapsed FTX exchange. The Financial Times reported on this on Tuesday.
The client, TGT, accused Tyr of “criminal” mismanagement. TGT also had a Swiss prosecutor raid Tyr’s offices. Now, TGT wants to close its Tyr account. It also wants to recover the remaining assets. It includes a $22 million FTX claim.
Futures Exchange was once a top crypto company. But it failed in 2022 after concerning news. A BTC Politan report showed FTX misused client funds. It involved its sister firm, Alameda Research, too. Soon after, FTX founder Sam Bankman-Fried’s empire collapsed. It led to many bankruptcies. It also caused a year-long crypto winter.
FTX Bankruptcy Sparks Market Fallout
The collapse of FTX, a leading crypto exchange founded by Sam Bankman-Fried, triggered a chain of bankruptcies and a prolonged slump in the crypto market. Many firms connected to the Futures Exchange, directly or indirectly, suffered from the fallout.
TGT said it raised Futures Exchange concerns from November 7 to 10, 2022. Yet Tyr, led by ex-Deutsche Bank’s Edouard Hindi, acted late. A court file says it only withdrew Futures Exchange assets on bankruptcy day.
TGT invests other companies’ money. It includes the crypto platform Yield. TGT also said Tyr broke an internal risk rule—this capped exposure to any party at 15% of assets. But Tyr denies TGT’s claims, the report added.
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