Yield App

Yield

Read

Backed by AGE Crypto and Alphabit, crypto wealth management platform Yield App has announced its shutdown following losses linked to the collapse of FTX.
<a href="https://crypto.news/tag/yield-app/" target="_blank" rel="noopener noreferrer nofollow">Yield App</a> appears to be the latest crypto firm to fall victim to the fallout from the FTX collapse, announcing in a Jun. 28 <a href="https://x.com/YieldApp/status/1806558286029918502" target="_blank" rel="noopener noreferrer nofollow">post on X</a> the closure of “all activity” as it “prepares to enter liquidation proceedings.”
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Suspension of platform activity ahead of liquidation proceedings 28 JUNE 2024, 04:15 UTC: Yield App Ltd, a Seychelles-incorporated limited liability company, is today, Friday 28 June 2024, announcing the suspension of all activity on the digital wealth platform…— Yield App (@YieldApp) <a href="https://twitter.com/YieldApp/status/1806558286029918502?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">June 28, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
Founded in 2020 by Tim Frost, Justin Wright, Jan Strandberg, and Jason Corbett, Yield App marketed itself as a “one-stop crypto wealth platform where you can earn interest, buy, and swap between your cryptocurrency assets.” Now, the firm is trying to get its funds stuck on the <a href="https://crypto.news/tag/ftx/" target="_blank" rel="noopener noreferrer nofollow">FTX</a> crypto exchange.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 “Yield App asks for the patience of its valued customers as it works with its advisors, with whom it jointly commits to releasing further information, including detailed FAQs, at the earliest possible date.”
 Yield App
</blockquote>
In the X post, Yield App attributed the decision to “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.”
Although the firm didn’t disclose the name of the hedge fund, earlier <a href="https://crypto.news/swiss-prosecutors-raid-crypto-hedge-fund-tyr-over-its-exposure-to-ftx/" target="_blank" rel="noopener noreferrer nofollow">reports</a> suggested that Yield App’s funds might be trapped on FTX due to “criminal” mismanagement by Swiss hedge fund Tyr Capital Partners.
Tyr allegedly ignored internal risk limits and investor warnings regarding its exposure to FTX. While Yield App wasn’t a direct client of Tyr, it was a client of TGT, a fund whose directors included Yield App co-founders Wright and Corbett, which had invested with Tyr on Yield App’s behalf.
FTX&nbsp;<a href="https://crypto.news/ftx-files-for-chapter-11-bankruptcy-taking-down-about-130-companies-with-it/" target="_blank" rel="noopener noreferrer nofollow">collapsed</a>&nbsp;in November 2022 amid allegations of embezzlement and misappropriation of billions of dollars in customer funds involving its owners and affiliated hedge fund Alameda Research. Sam Bankman-Fried, the founder of the exchange,&nbsp;<a href="https://crypto.news/sam-bankman-fried-sentenced-25-years-ftx/" target="_blank" rel="noopener noreferrer nofollow">was sentenced</a>&nbsp;to 25 years in prison and ordered to reimburse $11 billion.
Read more: <a href="https://crypto.news/ftx-saga-what-happened-to-ftx/" rel="noopener noreferrer nofollow"> FTX saga: what happened to FTX and Sam Bankman-Fried in 2023 </a>

Crypto wealth platform Yield App faces liquidation due to FTX-triggered losses

crypto.news

Other articles published on Jun 28, 2024

Holdium Airdrop for Solana Preorder Token Holders

Blocksquare Releases Real Estate RWA Launchpad with Community-Driven Marketplace Pools (28 Jun)

Binance Listed Popular Altcoin Announces New Collaboration with Alibaba, Price Reacts Positively!

Crypto Wealth Platform, Yield App, Shuts Down, Prepares for Liquidation Due to FTX-Related Financ...

Dogecoin Bearish Alert: Analyst Warns Of Potential Slide To $0.09, Here’s Why

Banque de France, Hong Kong Monetary Authority explore CBDC, tokenization

Join our free newsletter for daily crypto updates!