Yield App

Frost

Bitcoin

Yield

Discord

Update June 28, 13:20 pm UTC: This article has been updated to attribute quotes to Tim Frost.
Yield App, a Seychelles-incorporated crypto investment platform, announced on June 28 that it would halt all operations on its platform with immediate effect.
An official statement said the decision “had been made to ensure fair and equal treatment for all Yield App’s users and stakeholders.”
<blockquote data-ct-non-breakable="true">
 “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.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/2f3e2421-0c62-40e4-a414-effa053da45c.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/YieldApp/status/1806558286029918502" target="_blank" rel="noopener nofollow">Yield App</a>
 </figcaption>
</figure>
Related:&nbsp;<a href="https://cointelegraph.com/news/ftx-alameda-wallets-transfer-8-3m">FTX addresses transferred $8.3M one day before amended proposal deadline</a>
<h2 data-ct-non-breakable="true" id="what-investors-need-to-know">What investors need to know</h2>
According to the official statement, Yield App realized portfolio losses due to third-party hedge fund managers that held Yield App assets in custody on FTX, which are “subject to ongoing litigation.”
Yield App has suspended community channels, but a support channel will remain open to the public via the official website.
Tim Frost, CEO of Yield App, told Cointelegraph that the firm has been “pursuing litigation against several hedge funds” that had incurred substantial losses on assets in custody on FTX.
<blockquote data-ct-non-breakable="true">
 “Some of these proceedings are ongoing, however after 18 months of recovery actions, we have been advised to shutter the platform in the best interest of creditors, whereby the administrators will pursue claims directly.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/ftx-petitions-court-claims-dcg-genesis-trading">FTX petitions court to sell off $175M claim against DCG’s Genesis</a>
<h2 data-ct-non-breakable="true" id="discrepancies-in-ftx-exposure">Discrepancies in FTX exposure</h2>
Despite the announcement, previous statements from Yield App have cast doubt on the company’s transparency regarding its exposure to the FTX collapse.&nbsp;
In a Discord message dated Nov. 10, 2022, Frost reassured users that the crypto investment firm had “no significant exposure to FTX.”
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/dbe2c585-9ee7-4012-8d51-23bc68b2b0f8.png" alt="" title="">
 <figcaption style="text-align: center;">
 Yield App CEO Tim Frost message stating that the firm has “no significant exposure to FTX.” Source: Yield App Discord channel
 </figcaption>
</figure>
A source who wished to stay anonymous expressed confusion at the situation, telling Cointelegraph:
<blockquote data-ct-non-breakable="true">
 “This whole thing doesn’t make any sense. I think it’s super weird they got affected by FTX when it’s already two years ago, and they gave an official statement.”
</blockquote>
Frost told Cointelegraph that, per the statement given in November 2022, Yield App itself “did not have significant direct exposure to FTX.”
<blockquote data-ct-non-breakable="true">
 "The indirect exposure that we had through these fund managers came to light much later, since when we have been engaged in said legal proceedings."
</blockquote>
Related: <a href="https://cointelegraph.com/news/ftx-bankruptcy-claim-transfer-ftxcreditor-llc">Small creditors put at risk by latest FTX bankruptcy development</a>
<h2 data-ct-non-breakable="true" id="ftx-selloffs-continue">FTX selloffs continue</h2>
In 2024, the bankrupt crypto exchange FTX saw multiple sales of claims and assets and settled many disputes.&nbsp;
In February alone, <a href="https://cointelegraph.com/news/ftx-moves-offload-8-stake-anthropic">FTX offloaded 8% of its stake</a> in the artificial intelligence (AI) firm Anthropic, <a href="https://cointelegraph.com/news/ftx-settles-dispute-sells-european-arm-33m">sold off its European arm for $33 million</a>, and planned the <a href="https://cointelegraph.com/news/ftx-plans-sale-of-digital-custody-inc-for-500k-in-bankruptcy-move">sale of Digital Custody for $500,000</a>.
The ongoing asset liquidation efforts by the collapsed crypto exchange are part of its bankruptcy proceedings.
Magazine: <a href="https://cointelegraph.com/magazine/el-salvador-bitcoin-chief-argentina/">El Salvador’s national Bitcoin chief has been orange-pilling Argentina</a>

Crypto platform Yield App shuts down citing FTX losses

Table of Contents

Cointelegraph

Other articles published on Jun 28, 2024

Seeking High ROI & Passive Income? MoonBag Presale Crushes Render & Ripple in Top Crypto Presale!

S&P Joins MAS Project Guardian for Asset Tokenization

Alchemy Partners with ZetaChain to Boost Blockchain Development

Coinbase and Stripe Partner to Expand Crypto Adoption

Solana (SOL) Price Jumps 6% after VanEck Files for Solana-based Exchange-traded Fund (ETF)

Coinbase Seeks CFTC Nod for SHIB, AVA Futures Listings

Join our free newsletter for daily crypto updates!