The crypto hedge fund Tyr Capital is embroiled in a contentious dispute with one of its clients regarding its exposure to the bankrupt digital assets exchange FTX.

Tyr Capital Faces $22 Million Claim

Tyr Capital stands accused of "criminal" mismanagement by one of its clients, TGT, prompting a Swiss prosecutor to raid Tyr's offices. TGT is now seeking to close its account with Tyr and recover the remaining assets, which includes a substantial claim of $22 million against FTX, as reported by the Financial Times today (Tuesday).

The collapse of FTX, once hailed as a leading player in the crypto industry, traces back to 2022 following a report by CoinDesk. The report detailed how FTX and its sister company, Alameda Research, allegedly manipulated reserves using their native FTT token. The fallout led to the demise of Sam Bankman-Fried's multi-billion dollar empire and cast a pall over the crypto market for months.

TGT alleged that it had voiced concerns about FTX between November 7, 2022, and November 10, 2022. However, Tyr Capital, led by former Deutsche Bank executive Edouard Hindi, only withdrew assets from FTX on the day the exchange filed for bankruptcy, according to a court filing cited in the report.

Tyr Capital Denies Allegations of Mismanagement

Moreover, TGT, which manages investments from various companies including the crypto platform Yield, claims that Tyr Capital disregarded an internal risk requirement limiting exposure to any single party to 15% of assets. Tyr Capital has refuted these allegations, as outlined in the Financial Times report. The collapse of FTX has sent shockwaves through the crypto industry, impacting numerous companies directly or indirectly exposed to the exchange.

Swiss crypto hedge fund Tyr Capital is battling its client, TGT, over its dealings with bankrupt crypto exchange FTX, according to a report. By @parikshitm899.https://t.co/BMLx0fNt8D

— CoinDesk (@CoinDesk) February 20, 2024

FTX Hacked: Three Individuals Charged in $400 Million SIM-Swap Attack

The US federal prosecutors have charged three individuals for their involvement in a $400 million hack of crypto exchange FTX, utilizing the SIM-swap technique, as reported by Finance Magnates.

The perpetrators, Robert Powell, Carter Rohn, and Emily Hernandez, conducted SIM-swap attacks between March 2021 and April 2023, stealing identities of 50 victims. SIM-swapping involved seizing control of victims' phone numbers to access online accounts. Hernandez, impersonating an FTX employee, accessed FTX wallets on November 11, 2022, siphoning $400 million in cryptocurrencies. Some funds were laundered through Kraken, while others moved across various blockchains.