Yield App, a crypto investment platform based in Seychelles, has announced an immediate halt to all operations due to substantial losses tied to the FTX collapse. This decision comes despite prior assurances from the company that FTX exposure would have no significant impact on their operations.
Sudden Shutdown Explained
In an official statement released on June 28, Yield App explained that the shutdown aims to ensure fair and equal treatment for all users and stakeholders. The platform’s portfolio losses were attributed to third-party hedge fund managers who had placed Yield App assets on the now-defunct FTX exchange. These losses are currently subject to ongoing litigation.
Investor Information
Yield App emphasized that it has suspended its community channels but will keep a support channel open on its official website for any queries. Despite efforts to reach out to Yield App representatives for more details, no response was received before publication.
Discrepancies in FTX Exposure
The announcement has raised questions about Yield App’s transparency. In a Discord message dated November 10, 2022, Yield App CEO Tim Frost reassured users that the firm had “no significant exposure to FTX.” This contradiction has caused confusion among investors, with one anonymous source stating, “This whole thing doesn’t make any sense. It’s super weird they got affected by FTX when it’s already two years ago, and they gave an official statement.”
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The FTX bankruptcy proceedings have seen significant asset liquidations throughout 2024. In February, FTX sold 8% of its stake in the AI firm Anthropic, its European arm for $33 million, and planned to sell Digital Custody for $500,000. These sales are part of FTX’s efforts to settle disputes and liquidate assets as part of its bankruptcy process.
