Yield App, a crypto investment platform based in Seychelles, announced on June 28 that it will immediately cease all operations on its platform. The decision was made to ensure fair treatment for all users and stakeholders, according to an official statement. The platform has experienced portfolio losses due to third-party hedge fund managers who held Yield App assets in custody on FTX, which is currently involved in ongoing litigation. While community channels have been suspended, a support channel will remain open to the public on the official website.
Yield App CEO, Tim Frost, stated that the company has been pursuing litigation against several hedge funds that incurred significant losses on assets held in custody on FTX. However, previous statements from Yield App have raised questions about the company’s transparency regarding its exposure to the FTX collapse. In a Discord message from November 2022, Frost reassured users that the company had no significant exposure to FTX. This has caused confusion among some anonymous sources.
FTX, the bankrupt crypto exchange, has been selling off claims and assets as part of its bankruptcy proceedings. In February alone, FTX sold 8% of its stake in the AI firm Anthropic, sold its European arm for $33 million, and planned to sell Digital Custody for $500,000. These ongoing asset liquidation efforts continue to take place.