Seychelles-registered cryptocurrency investment platform Yield App Ltd has announced an immediate suspension of all operations on its digital wealth platform, Yield.App. The decision comes as the company prepares to enter into liquidation, aiming to ensure fair and equal treatment for all users and stakeholders.
The announcement was made today through an official statement posted on X: “Yield App Ltd, a Seychelles-based limited liability company, today, Friday, June 28, 2024, announces the suspension of all activities on the digital wealth platform http://yield.app as the company prepares to enter into liquidation.”
Prior to this, third-party hedge fund managers had custody of Yield App assets on the now-bankrupt cryptocurrency exchange FTX, resulting in significant losses to the portfolio. These hedge funds are also involved in ongoing litigation.
With immediate effect, all activities on the Yield App platform will cease, pending negotiations with the liquidators. Community channels will also be suspended, although support channels will still be available through the Yield App during this transition period to assist users.
Yield App has requested patience from its customers and assures them that more information, including detailed FAQs, will be provided as soon as possible.
The cryptocurrency community has had mixed reactions to this announcement. One user expressed disbelief, stating, “I can’t believe it. I thought you would survive the bear market and come back strong. The bull market is only halfway through, why give up now?”
Another user commented, “I’m glad I withdrew my Bitcoin a few months ago.” Overall, people’s emotions are shocked, with many users simply asking, “What?” Another netizen commented, “What’s going on? This must be a joke.”
This announcement has raised concerns about the transparency of Yield App, especially considering its previous assurances regarding its exposure to FTX.
In a Discord message on November 10, 2022, Yield App CEO Tim Frost assured users that the company had “no significant exposure to FTX.” This statement has come under scrutiny following today’s disclosure.
The liquidation of Yield App’s assets occurs against the broader backdrop of FTX’s bankruptcy proceedings. The collapsed exchange has been actively liquidating assets to settle disputes. Just in 2024, FTX sold an 8% stake in the artificial intelligence company Anthropic for $33 million, sold its European subsidiary for $5 million, and planned to sell its digital custodian for $500,000.
FTX’s collapse has had a severe impact on several companies. Last year, Galois Capital, a hedge fund founded by Kevin Zhou, closed its flagship fund due to significant exposure to FTX. The fund lost nearly half of its capital when FTX collapsed.
