Swiss prosecutors raid crypto hedge fund Tyr over its exposure to FTX

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Raided by a Swiss prosecutor, Tyr Capital Companions is dealing with accusations of legal mismanagement attributable to its ties to FTX.

The Switzerland-based crypto hedge fund, Tyr Capital Companions, got here beneath scrutiny in August 2023 after buyers raised issues about its failure to stick to inside danger limits relating to its publicity to the now-defunct FTX crypto trade, the Monetary Instances reports, citing authorized paperwork filed within the Cayman Islands.

The authorized motion in opposition to Tyr Capital Companions was reportedly introduced by TGT, one other hedge fund that had invested with Tyr. TGT is presently looking for to wind up the portfolio and acquire management of the remaining property, which embody a $22 million declare in opposition to FTX, the report says. Regardless of the allegations, Tyr, which manages property totaling $140 million, has denied any wrongdoing.

In keeping with TGT, the agency had warned Tyr’s chief funding officer, Edouard Hindi, about FTX’s monetary instability between Nov. 7 and Nov. 10, 2022, simply days earlier than the trade collapsed. Nevertheless, Tyr Capital Companions allegedly tried to withdraw its property from FTX round Nov. 11, the identical day the trade filed for chapter, in response to the authorized submitting.

Moreover, TGT lodged a legal grievance in opposition to Tyr with the Geneva prosecutor’s workplace in April 2023, citing suspicions of “legal administration” and requesting a “daybreak raid” on the fund supervisor’s premises. A spokesperson for the Geneva prosecutor confirmed that the investigation remains to be ongoing.

FTX made headlines in November 2022, when it filed for Chapter 11 chapter, disclosing an $8 billion deficit in its accounts, resulting in its formal declaration of chapter. Its founder, Sam Bankman-Fried, faces potential imprisonment of as much as 100 years on a number of costs in reference to the trade’s collapse.

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