The platform has suspended its community channels, but a support channel will remain accessible to the public through its official website.
Yield App, a Seychelles-incorporated crypto investment platform, has announced it would cease operation on its platform, citing FTX losses.
Yield App stated that the collaboration with the collapsed crypto exchange was intended to enhance liquidity and trading capacities, which resulted in unexpected setbacks.
An official statement by the platform emphasized that the decision was made to uphold fair and equal treatment for all of Yield App’s users and stakeholders.
The platform noted, “This follows the realization of portfolio losses incurred through third-party hedge fund managers that held Yield App assets in custody on the collapsed cryptocurrency exchange FTX and who are subject to ongoing litigation.”
Yield App’s Dealings and Losses
According to the official statement, Yield App experienced portfolio losses due to third-party hedge fund managers holding Yield App assets in custody on FTX, which are currently under litigation.
Yield App has suspended its community channels, but a support channel will remain accessible to the public through its official website.
Tim Frost, CEO of Yield App, noted that the company has been actively pursuing legal action against multiple hedge funds that sustained significant losses on assets held in custody on FTX.
“Some of these proceedings are ongoing, however after 18 months of recovery actions, we have been advised to shutter the platform in the best interest of creditors, whereby the administrators will pursue claims directly,” Frost said.
Despite the announcement, earlier statements from Yield App have raised concerns about the company’s transparency regarding its involvement with the FTX collapse.
Furthermore, on November 10, 22, Discord revealed that Frost reassured users that the crypto investment firm had minimal exposure to FTX.
FTX Transactions
Meanwhile, in 2024, the bankrupt crypto exchange FTX underwent multiple transactions involving the sale of claims and assets, resolving numerous disputes.
FTX sold 8% of its stake in the artificial intelligence (AI) firm Anthropic, divested its European division for $33 million, and scheduled the sale of Digital Custody for $500,000 in February alone.
In addition, the once-leading crypto exchange’s current efforts to liquidate assets are an essential part of its bankruptcy proceedings.
