Swiss prosecutors raided Tyr Capital's offices due to links to FTX

The office of cryptocurrency hedge fund Tyr Capital Partners in Geneva was raided by Swiss prosecutors due to investor disputes related to the company's losses after the bankruptcy of FTX.

The basis for the searches was an appeal to the Swiss prosecutor's office from the TGT investment fund, which was previously a financial partner of Tyr Capital.

The TGT administration accuses Tyr Capital management of “criminal mismanagement, disregard of internal risk limits, and failure to warn investors about the risks of the impact of the bankruptcy of FTX Group on the pooled investment capital.”

TGT's statement of claim notes that as a result of Tyr Capital's criminal mismanagement, the value of the investment company's asset portfolio fell by 84%, and the fund was forced to launch legal liquidation procedures.

Acting through Swiss prosecutors, the TGT administration plans to close financial obligations to investors and take control of the remaining assets under Tyr Capital's management, including the $22 million lawsuit previously filed against FTX.

The day before, creditors of the FTX crypto exchange that collapsed in 2022 filed a class action lawsuit in the Southern District Court of Florida against the law firm Sullivan and Cromwell (S&C), which was overseeing the bankruptcy proceedings of the trading platform.