Yield App halts operations due to losses linked to FTX crypto platform

Yield App, a cryptocurrency investment platform based in Seychelles, made an announcement on June 28 that it would immediately cease all operations on its platform. The decision was made to ensure equal treatment for all users and stakeholders, according to an official statement. Yield App experienced portfolio losses due to third-party hedge fund managers who held the platform’s assets in custody on FTX, which is currently facing legal action. Community channels have been suspended, but a support channel will remain open on the official website. CEO Tim Frost stated that Yield App has been involved in litigation against several hedge funds that incurred significant losses on assets held on FTX. However, previous statements from Yield App contradicted its transparency regarding its exposure to the FTX collapse. In a message from November 2022, Frost reassured users that the company had no significant exposure to FTX. The ongoing bankruptcy proceedings of FTX have seen the exchange sell off claims and assets, including its stake in the artificial intelligence firm Anthropic, its European arm, and Digital Custody.