One of the cryptocurrency industry’s highest-profile hedge fund firms has been accused of “criminal” mismanagement and raided by a Swiss prosecutor, in a dispute with an investor over losses suffered following the collapse of crypto exchange FTX.

Geneva-based Tyr Capital Partners is alleged to have ignored an internal risk limit and investor warnings over its exposure to FTX, according to legal documents filed in the Cayman Islands by an investor and seen by the Financial Times. 

The action has been brought by TGT, a fund that invested with Tyr and that is now trying to wind up the portfolio and take control of the remaining assets, including a $22mn claim against FTX. TGT invests money from a group of companies that includes crypto wealth platform Yield App.