TGT alleges that Tyr withdrew funds from FTX the day it went bankrupt despite receiving several warnings in the days prior.
The fund also claims that Tyr ignored an internal risk requirement not to have over 15% exposure with one firm.

Crypto hedge fund Tyr Capital is battling a dispute with one of its clients over its exposure to bankrupt digital assets exchange FTX, the Financial Times reported on Tuesday.

Tyr has been accused of “criminal” mismanagement by one of its clients, TGT, and had its offices raided by a Swiss prosecutor, the report said. TGT is now looking to close its account with Tyr and recover the remaining assets, including a $22 million claim against FTX.

FTX, once the darling of the crypto industry, collapsed in 2022 after a CoinDesk report detailed how the exchange and its sister company, Alameda Research, used their native FTT token to manipulate their reserves. The subsequent fall of FTX founder Sam Bankman-Fried’s multi-billion dollar empire led to a string of bankruptcies and a year-long winter for the crypto market.

The collapse of FTX impacted several companies directly or indirectly exposed to the exchange.

TGT alleged that it had raised concerns around FTX between November 7, 2022, and November 10, 2022. However, Tyr, led by ex-Deutsche bank exec Edouard Hindi, only withdrew the assets from FTX the day it filed for bankruptcy, the report said, citing a court filing.

TGT, which invests money from other companies, such as crypto platform Yield, also alleged that Tyr ignored an internal risk requisite, limiting exposure to any party to 15% of the assets. Tyr has denied the claims made by TGT, the report said.

“The information made available to journalists is false and wholly disputed. There is no valid legal claim that can be asserted by Yield App (TGT LP/GP) against the company," Tyr said in a statement.

TGT could not be reached for comment.

UPDATE (Feb. 20, 12:17 UTC): Adds comment from Tyr Capital.

FTX Switzerland Hedge Fund Legal

Parikshit Mishra

Parikshit Mishra is CoinDesk's Deputy Managing Editor responsible for breaking news coverage. Before joining CoinDesk, he was the European Editor at Acuris (Mergermarket), where he dealt with copies related to private equity and the startup ecosystem. He has also worked as an analyst for CRISIL, covering the European markets and global economies. His most notable tenure was with Reuters, where he worked as a correspondent and an editor for various teams. He does not have any crypto holdings.