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A top hedge fund faced a Swiss raid over FTX-related losses.

The incident sheds light on the risks of operating in the cryptocurrency market and the difficulties investment funds may face in managing a portfolio of digital assets.

Date: 2024-02-20 Author: Łukasz Michałek
A top hedge fund faced a Swiss raid over FTX-related losses.

Tyr Capital Partners, a well-known cryptocurrency hedge fund, is facing allegations of mismanagement. Swiss prosecutors have searched the company amid FTX-related losses.

On Tuesday, the Financial Times reported that the Geneva-based firm ignored an internal risk threshold and investor warnings about its large exposure to the now-defunct exchange. The information came from legal documents filed by an investor in the Cayman Islands.

The TGT fund , which worked with Tyr, has taken legal action. It is now considering liquidating the portfolio and taking control of the remaining assets. This includes a $22 million claim against FTX. The FT report indicates that TGT oversees the finances of several entities, including the cryptocurrency platform Yield App.

Tyr was founded in 2018 and serves wealthy individuals through hedge fund management. Hybrid venture capital funds , which integrate liquid assets to streamline portfolio construction, and market/arbitrage neutral funds are just some of the wide range of investment services the company specializes in.

Edouard Hindi, who was once head of energy trading at Deutsche Bank, and Olivier Trombert, who was once head of energy options at Société Générale, now oversee the company.

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Specifically, TGT said Tyr had disregarded an internal risk limitation that limited exposure to each entity to 15% of its assets. However, Tyr disputed this claim and told the prosecutor that the fund’s independent committee found no violation of internal regulations.

Lgal documents show that the claim against FTX was transferred to a new fund. In addition, FT reported that a small portfolio containing TGT’s remaining assets saw an 84% decline in dollar value between January and October last year.

Tyr had denied the allegations made by TGT. The fund had not responded to Cryptonews ‘ request for comment by press time.

TGT is believed to have filed a criminal complaint against Tyr with the Geneva prosecutor in April 2023. The complaint accused the fund’s management office of “dawn raiding” and “criminal mismanagement.”

The search warrant, which was executed last August 17, resulted in the confiscation of Tyr’s documents. Justin Wright, director of TGT, told the FT that the fund is currently undergoing a liquidation process before the Cayman Islands courts .

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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