Seychelles-registered cryptocurrency investment platform, Yield App Ltd, has announced the immediate suspension of all operations on its digital wealth platform, Yield.App. This 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 shared on X. “Yield App Ltd, a Seychelles-registered limited liability company, hereby announces the suspension of all activities on the digital wealth platform http://yield.app, as the company prepares to enter into liquidation,” the statement read.
The suspension of platform activities on Yield App is effective immediately, as stated in the official post. “Yield App Ltd, a Seychelles-registered limited liability company, today, Friday, June 28, 2024, announces the suspension of all activities on the digital wealth platform…” – Yield App (@Yield App) August 28, 2024.
Previously, third-party hedge fund managers had custody over Yield App assets on the now-bankrupt cryptocurrency exchange, FTX, resulting in significant losses to the investment portfolio. These hedge funds are also involved in ongoing litigation.
All activities on the Yield App platform will cease immediately, pending consultation with the liquidators. Community channels will also be temporarily 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 clients and assured them that more information, including detailed FAQs, will be provided as soon as possible.
The announcement has received mixed reactions from the cryptocurrency community. One user expressed disbelief, stating, “I can’t believe it. I thought you would weather the bear market and come back strong. The bull market is only halfway through, so why give up now?” Another user commented, “I’m glad I withdrew my Bitcoin a few months ago.” Overall, the sentiment among people is one of shock, with many Yield App users simply asking, “What?” Another online commentator remarked, “What’s going on? This must be a joke.”
The transparency of Yield App has been called into question following this announcement, particularly in light of 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 after today’s disclosure.
The liquidation of Yield App assets occurs against the broader backdrop of FTX’s bankruptcy proceedings. The collapsed exchange has been actively liquidating assets to resolve disputes. In 2024 alone, FTX sold an 8% stake in artificial intelligence company Anthropic for $33 million, sold its European subsidiary for $50 million, and plans to sell its digital custody 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.