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

Last Updated February 20, 2024 2:03 PM
Teuta Franjkovic
Last Updated February 20, 2024 2:03 PM
By Teuta Franjkovic
Verified by Peter Henn

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.

Legal Friction Intensifies Between TGT Fund and Tyr

TGT is taking legal action against Tyr over allegations of mismanagement and breach of contract. TGT is currently navigating the legal process in the Cayman Islands to wind up the fund, amid claims that Tyr failed to adhere to internal risk limits, particularly by overexposing the portfolio to the now-collapsed FTX  exchange.

Tyr has countered , asserting its compliance with all regulatory and contractual obligations, and denying any legal basis for TGT’s claims. The fund argues the significant loss of assets was not a result of trading decisions. Instead, they claimed, it was due to legal expenses incurred from defending against TGT’s accusations and operational costs. Meanwhile, Tyr disputes the claim of an 84% asset loss, emphasizing its commitment to legal and regulatory standards.

TGT, led by Yield App co-founders, has criticized  the fund’s management and called for an independent inquiry into its operations. The dispute also highlights the involvement of an independent committee, which TGT accuses of failing to prevent the fund’s asset depletion post-FTX collapse. In response, a director from the committee has dismissed allegations of mismanagement and announced plans to challenge the petition.

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