Crypto News- Official Statement and Reasons for Suspension
Crypto News– Yield App, a crypto investment platform based in Seychelles, announced on June 28 that it is ceasing all operations immediately. In an official statement, the company explained that this decision was made to ensure fair and equal treatment for all users and stakeholders of Yield App.
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.
Important Information for Investors
According to the official statement, Yield App experienced portfolio losses due to third-party hedge fund managers who held the platform’s assets on FTX, now involved in ongoing litigation.
Yield App has suspended its community channels but will keep a support channel open to the public through its official website. A spokesperson told Cointelegraph that the company is pursuing litigation against several hedge funds responsible for significant losses on assets held with FTX.
Inconsistencies in FTX Exposure
Despite the recent announcement, earlier statements from Yield App have raised questions about the company’s transparency concerning its exposure to the FTX collapse.
In a Discord message dated November 10, 2022, Yield App’s Tim Frost reassured users that the crypto investment firm had no significant exposure to FTX.
Ongoing FTX Asset Sales
In 2024, the bankrupt crypto exchange FTX engaged in multiple sales of claims and assets, settling numerous disputes.
In February alone, FTX sold 8% of its stake in the artificial intelligence firm Anthropic, divested its European arm for $33 million, and planned to sell Digital Custody for $500,000.
These ongoing asset liquidation efforts are a part of FTX’s bankruptcy proceedings.
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