As a long-term crypto investor with experience in navigating market volatility and understanding the risks involved in decentralized finance (DeFi) platforms, I find Yield App’s announcement to suspend all operations and enter liquidation proceedings a disappointing turn of events. The sudden halt of platform activity, coupled with the revelation of significant losses due to third-party hedge funds’ mismanagement of assets on the now bankrupt exchange FTX, leaves me feeling disillusioned and uncertain about my investments.


As a crypto investor, I’ve received unfortunate news from Yield App Ltd, a Seychelles-based crypto investment platform. They have announced an immediate halt to all operations on their digital wealth platform, yield.app.

As a financial analyst, I would rephrase this statement as follows: In preparation for initiating liquidation proceedings, our company is taking steps to guarantee a level playing field for all users and stakeholders, ensuring they are treated equitably throughout the process.

Yield App Stops Operations

Effective immediately, Yield App Ltd, a Seychelles-based company, announced in an official statement that they are halting all operations on their digital wealth platform, yield.app. The company is preparing to initiate liquidation processes.

Suspension of platform activity ahead of liquidation proceedings

On Friday, the 28th of June, 2024, Yield App Limited, a Seychelles-based corporation, has made an announcement: all operations on their digital wealth platform will be temporarily halted as of 04:15 UTC.

— Yield App (@YieldApp) June 28, 2024

Yield App experienced substantial losses in its portfolio due to the failure of third-party hedge funds that managed their assets on the defunct cryptocurrency exchange, FTX. These hedge funds, currently embroiled in legal disputes, had been in charge of Yield App’s assets prior to FTX’s bankruptcy.

Starting from now, Yield App is pausing all operations on their platform while they work with liquidators. Their community channels will be put on hold, but users can still reach out for assistance via Yield App’s support channel during this time of transition.

As a researcher investigating the situation with Yield App, I’d like to extend my apologies for any inconvenience caused by the lack of immediate answers. Rest assured that we are working diligently to compile comprehensive FAQs and will share this valuable information with you at the earliest opportunity.

As a researcher studying the cryptocurrency community’s response to recent announcements, I came across a diverse range of reactions. One user voiced dismay, exclaiming, “I find this hard to believe. I had faith in your ability to endure the bear market and bounce back strongly. Why call it quits when we’re merely halfway through the bull market?”

“A user expressed relief for having cashed out their bitcoin some time ago. The general reaction was disbelief, with some X users questioning, ‘Really?’ Another user exclaimed, ‘Is this a prank?'”

Yield App’s Transparency Questioned

The announcement has sparked worries about Yield App’s transparency, given past promises concerning its connection to FTX.

On November 10, 2022, in a Discord message, Yield App CEO Tim Frost reassured users that the company’s involvement with FTX was minimal. However, recent disclosures have caused this statement to be questioned.

Amidst FTX’s ongoing bankruptcy proceedings, Yield App is in the process of liquidating its assets. This liquidation comes as part of a larger picture with FTX actively selling off assets to resolve disputes. In 2024, FTX disposed of 8% of its ownership in Anthropic for an undisclosed amount, sold its European branch for $33 million, and intended to sell Digital Custody for $500,000.

As an analyst, I’ve observed that the demise of FTX has brought about significant consequences for various entities in the industry. Specifically, last year, Galois Capital, a hedge fund led by Kevin Zhou, had to shut down its primary fund due to substantial investment in FTX. The unfortunate event resulted in almost half of the fund’s capital being lost following FTX’s collapse.

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2024-06-29 01:16