Tyr Capital Faces Client Dispute over Exposure to FTX’s Bankruptcy

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

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.

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.

This article was written by Tareq Sikder at www.financemagnates.com.

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