Tyr Capital, a Swiss cryptocurrency hedge fund, is facing negative publicity due to its affiliation with the defunct FTX exchange. TGT, one of Tyr’s clients, is suing the fund to sever connections and reclaim ownership of its residual assets after accusing it of “criminal” mismanagement.
Tyr was regularly cautioned about the risks associated with FTX, which TGT began expressing in the days before to the bankruptcy declaration, and TGT claims that Tyr withdrew funds from FTX on November 11, 2022, the day FTX filed for bankruptcy on multiple occasions.
Additionally, the TGT claims that Tyr violated the policy’s internal risk limit, which stipulates that no more than 15% of assets may be exposed. The client makes the implication that Tyr Inc. had too much capital at FTX prior to its catastrophic collapse, despite the warning indicators.
After Tyr Capital’s offices were searched, the investment company connected to the cryptocurrencycurrency platform Yield App is currently attempting to terminate its account and reclaim ownership of its holdings, which includes a $22 million claim against FTX.
Tyr Capital has refuted TGT’s accusations, but mounting legal action highlights the enduring consequences of FTX’s disastrous collapse on the cryptocurrencycurrency scene. Large and small investors lost billions, and the exchange could only provide pennies on the dollar in returns.
Regulators from all over the world closely examine the risk controls and links between cryptocurrencycurrency funds and troubled firms such as FTX. As the sector tries to regain confidence, the expensive Tyr Capital scandal demonstrates increased investor awareness regarding cryptocurrencycurrency exposures.
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