Cryptocurrency hedge fund Tier Capital is in a dispute with one of its clients over its exposure to bankrupt digital asset exchange FTX, the Financial Times reported on Tuesday.
The report said Till was accused of “criminal” mismanagement by one of its clients, TGT, and its offices were searched by Swiss prosecutors. TGT is now closing its account with Tyr and seeking to recover its remaining assets, including a $22 million claim against FTX.
FTX, once the darling of the cryptocurrency industry, is on the brink of a CoinDesk report detailing how the exchange and its sister company Alameda Research used native FTT tokens to manipulate reserves. , collapsed in 2022. Then FTX founder Sam Bankman Fried's multibillion-dollar empire collapsed, followed by a spate of bankruptcies and a year-long winter in the cryptocurrency market.
FTX's failure affected several companies directly or indirectly exposed to the exchange.
TGT claimed that it raised concerns over FTX between November 7, 2022 and November 10, 2022. But Thiel, led by former Deutsche Bank executive Edouard Hindy, only withdrew assets from FTX on the day it filed for bankruptcy, the report said. He said, citing court filings.
TGT, which invests money from other companies including crypto platform Yield, also alleged that Thiel ignored internal risk requirements and limited its exposure to parties to 15% of its assets. According to reports, Till denied TGT's claims.
Tyr did not immediately respond to CoinDesk's request for comment, and TGT could not be reached for comment.
