Crypto Hedge Fund Tyr Capital Entangled in Legal Dispute Over FTX Collapse
Tyr Capital faces legal challenges from client TGT due to association with bankrupt FTX, amidst accusations of fund mismanagement.
February 20, 2024
Dispute Over FTX Exposure
Crypto hedge fund Tyr Capital faces a legal battle with their client TGT regarding the fund's ties to the now-defunct exchange FTX. Accused of "criminal" mismanagement, Tyr's offices were subject to a Swiss prosecutor's raid. TGT aims to sever its relationship with Tyr and recover funds, including a substantial sum from FTX.
The Fall Of FTX
The once-revered crypto exchange FTX crumbled in 2022 due to allegations of using its FTT token to obscure the truth about its financial state. This revelation triggered a domino effect, tarnishing the crypto industry and pushing Sam Bankman-Fried's empire into a series of bankruptcies.
TGT's Allegations Against Tyr
TGT claims it had highlighted concerns regarding FTX just before its bankruptcy, but Tyr withdrew funds only on the day of FTX's filing. TGT also accuses Tyr of neglecting internal risk mandates. While Tyr rebuts these accusations, both parties remain tight-lipped for further comments.
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