Yield App Halts Operations Due to FTX Losses

Yield App Halts Operations Due to FTX Losses

Yield App, a Seychelles-based cryptocurrency investment platform, has ceased all operations as of June 28. The decision follows significant portfolio losses incurred through third-party hedge fund managers who held Yield App's assets in custody on the collapsed cryptocurrency exchange FTX. The company stated that the move aims to ensure fair and equal treatment for all its users and stakeholders.

The platform's community channels have been suspended, although a support channel remains accessible via its official website. This development comes amid ongoing litigation related to the losses and follows earlier concerns about the company's transparency regarding its exposure to FTX. Yield App had previously raised nearly $5 million in a hybrid funding round in 2020, and its native token, YLD, experienced a sharp decline of 58% following the announcement.

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