Yield App Halts Operations Amid FTX Collapse Losses

The Yield App team has ceased all operations on the platform “after realizing the losses incurred by the portfolio of third-party hedge fund managers who held assets on FTX.”

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) June 28, 2024

On November 10, 2022, the team of the Seychelles-registered company assured clients of no significant impact from the bitcoin exchange collapse.

The platform’s assets are subject to ongoing legal proceedings.

The decision “was made to ensure fair and equal treatment for all Yield App users and stakeholders.”

Developers urged clients to be patient and await further information “as soon as possible.”

“It’s very strange that they suffered from FTX when it’s been two years,” commented one of the platform’s users.

In June, a group of creditors led by Sunil Kavuri filed an objection to the compensation plan. The latter proposed that 98% of clients would receive at least 118% of their claims. 

Earlier, it was revealed that the amount of approved payments to consultants and lawyers accompanying the FTX bankruptcy exceeded $500 million.

In June, the organization settled a $24 billion lawsuit with the U.S. Internal Revenue Service.