Crypto Hedge Fund Under Fire After FTX Collapse: “Mismanagement, Missed Signals”

Key Takeaways

• Accusations of FTX mismanagement lead Swiss prosecutors to raid crypto hedge fund Tyr.
• Investor claims Tyr ignored warnings, seeks control of $22m FTX claim in legal battle.
• Tyr denies wrongdoing, blames legal costs for losses as independent inquiry looms.

Crypto hedge fund, Tyr Capital Partners based in Geneva, faces allegations  of mismanagement. Swiss prosecutors raided the company after a legal dispute.

This action stems from an investor’s claims  regarding losses linked to the FTX collapse. He suggests the firm overlooked internal risk controls and investor cautions about its FTX investments, as stated in legal filings in the Cayman Islands.

TGT Fund Seeks Control Over Assets in Dispute with Crypto Hedge Fund Tyr

In an unfolding drama, TGT, an investment fund, has initiated action  to dissolve its portfolio and seize assets from Tyr. This move includes a significant $22 million claim against the FTX cryptocurrency exchange. TGT, which pools resources from various entities including the crypto wealth management service Yield App, is now pushing for control over the remaining assets amid attempts to wind up the investment portfolio.

Tyr, under the leadership of former Deutsche bank trader Edouard Hindi,  and Olivier Trombert, previously at the helm of Société Générale’s energy options desk, has refuted TGT’s accusations.

Despite the controversy, Tyr has been celebrated as a beacon of success in the volatile crypto hedge fund landscape. The firm has navigated the market, managing approximately $140 million in assets and capitalizing on price differentials in cryptocurrencies. As a result, it has distinguished itself from peers such as Three Arrows Capital and Galois Capital, which have faced operational collapse.

TGT Fund Initiates Legal Action Against Fund Tyr Over Asset Control

In a recent development in the cryptocurrency sector, the TGT investment fund has launched  a legal challenge against Tyr, a crypto hedge fund in which it had invested. The dispute centers on TGT’s efforts to liquidate its portfolio and assert control over significant assets, including a notable $22 million claim against the embattled cryptocurrency exchange FTX. TGT, meanwhile, is keen on consolidating the remaining assets as it seeks to close out its investment portfolio.

Casey McDonald, Independent Director at Calderwood, did not immediately respond to a request for comment.

About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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