Yield App, a crypto investment platform based in Seychelles, announced today that it will cease all operations immediately.
Crypto Platform Yield App Closed Citing FTX Losses
The decision follows portfolio losses linked to the collapsed cryptocurrency exchange FTX, despite previous assurances that it would not have a significant impact.
In the official statement made by Yield App, it was emphasized that the decision was taken “to ensure fair and equal treatment for all users and stakeholders of Yield App.”
The announcement revealed that Yield App had suffered portfolio losses through third-party hedge fund managers who kept Yield App assets under custody on FTX. These assets are currently the subject of ongoing litigation.
In response to the closure, Yield App suspended its community channels, but a support channel remained open through its official website.
Yield App's closure raises questions about the company's transparency regarding its exposure to the FTX crash.
In a Discord message dated November 10, 2022, Yield App's Tim Frost assured users that the firm “does not have significant exposure to FTX.” This latest development contradicts previous assurances.
A source who wished to remain anonymous expressed confusion about the situation, saying: “This whole thing makes no sense. I think it's very strange that they were influenced by FTX even though they made an official statement two years ago.”
*This is not investment advice.