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Swiss crypto hedge fund Teal Capital is battling fallout over its relationship with the collapsed FTX exchange. One of Mr Till’s clients, TGT, has accused the fund of “criminal” mismanagement, severing ties with it and taking legal action to regain control of its remaining assets.
TGT alleges that Thiel withdrew funds from FTX on November 11, 2022, the date FTX filed for bankruptcy several times, after Thiel was repeatedly warned about the risks associated with FTX. The company began expressing its risks several days before declaring bankruptcy.
TGT also said Mr Thiel complied with internal risk rules, which prohibit him from disclosing more than 15% of his assets. Despite the warning signs, the client hints that he had too much capital in FTX before Tyr Inc.’s dramatic downfall.
Investment firms associated with cryptocurrency platform Yield App had Teal Capital’s offices raided and are now closing their accounts and working to regain control of their holdings, including a $22 million claim against FTX. There is.
Although Tyr Capital denies TGT’s claims, the growing legal pressure focuses on the ongoing fallout across the crypto industry in the wake of FTX’s chaotic failure. Investors large and small lost billions of dollars, and exchanges were only able to refund pennies on the dollar.
Regulators around the world are closely scrutinizing crypto funds’ risk management and ties to failed players like FTX. The costly Tier Capital dispute shows that investors are increasingly aware of crypto exposure as the industry works to restore confidence.
Also read: Sullivan and Cromwell face class action lawsuit over FTX collapse
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