Fun

Crypto platform Yield App shuts down citing FTX losses

News Feed - 2024-06-28 07:06:27

Josh O"Sullivan13 hours agoCrypto platform Yield App shuts down citing FTX lossesYield App halts operations, citing losses from FTX exposure, despite previous assurances of no significant impact.2155 Total views3 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksUpdate 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.”“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.”Source: Yield App


Related: FTX addresses transferred $8.3M one day before amended proposal deadlineWhat investors need to know


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.“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.”


Related:FTX petitions court to sell off $175M claim against DCG’s GenesisDiscrepancies in FTX exposure


Despite the announcement, previous statements from Yield App have cast doubt on the company’s transparency regarding its exposure to the FTX collapse. 


In a Discord message dated Nov. 10, 2022, Frost reassured users that the crypto investment firm had “no significant exposure to FTX.”Yield App CEO Tim Frost message stating that the firm has “no significant exposure to FTX.” Source: Yield App Discord channel


A source who wished to stay anonymous expressed confusion at the situation, telling Cointelegraph:“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.”


Frost told Cointelegraph that, per the statement given in November 2022, Yield App itself “did not have significant direct exposure to FTX.”"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."


Related:Small creditors put at risk by latest FTX bankruptcy developmentFTX selloffs continue


In 2024, the bankrupt crypto exchange FTX saw multiple sales of claims and assets and settled many disputes. 


In February alone, FTX offloaded 8% of its stake in the artificial intelligence (AI) firm Anthropic, sold off its European arm for $33 million, and planned the sale of Digital Custody for $500,000.


The ongoing asset liquidation efforts by the collapsed crypto exchange are part of its bankruptcy proceedings.


Magazine:El Salvador’s national Bitcoin chief has been orange-pilling Argentina# Blockchain# Cryptocurrencies# Business# Investments# Tokens# DeFi# Cryptocurrency Investment# FTXAdd reaction

News Feed

Technical Analysis: LUNA Leads Crypto Rally, ANC Slips Under Bearish Pressure
Technical Analysis: LUNA Leads Crypto Rally, ANC Slips Under Bearish Pressure On Monday, terra (LUNA) rose for its 8th session in nine days, as its value increased by close to 60%
US Senators and Treasury Reach Agreement on Crypto Requirements in Infrastructure Bill
US Senators and Treasury Reach Agreement on Crypto Requirements in Infrastructure Bill Five U.S. senators have been working with the Treasury Department and have
Dogecoin Bullish Takeover: DOGE To Outperform Bitcoin By 2,400% — Here’s How
Este artículo también está disponible en español. The price of Dogecoin had one of the most profitable Novembers in its history, surging by more than 150% over the past 3
Bitfinex Executives Deny Allegations of Issuing USDT to Pump BTC – “Tether Backed by Cash Assets and a Loan”
Bitfinex Executives Deny Allegations of Issuing USDT to Pump BTC – "Tether Backed by Cash Assets and a Loan" Bitfinex general counsel Stuart Hoegner has dismi
Lucrosus Capital CEO Piotr Barbachowski Explains the Benefits of Decentralized Venture Capital
Lucrosus Capital CEO Piotr Barbachowski Explains the Benefits of Decentralized Venture Capital Lucrosus Capital is the first gamified Decentralized Venture Capital (DeVC) providing
Derek Andersen6 hours agoNew Zealand dollar stablecoin goes live through local crypto exchangeEasy Crypto launched the aptly named New Zealand Dollar Stablecoin (NZDD) in partnership with an Australian blockchain develop
Vitalik Buterin wants rollups to hit stage 1 decentralization by year-end
Martin Young4 hours agoVitalik Buterin wants rollups to hit stage 1 decentralization by year-endEthereum network standards should increase when considering layer-2 scaling solutions, suggested Ethereum co-founder Vitalik
Rakesh Upadhyay2 hours agoPrice analysis 7/1: BTC, ETH, BNB, XRP, ADA, DOGE, SOL, LTC, MATIC, DOTThe rejection of ETF applications by the SEC caused a knee-jerk reaction but the shallow fall in Bitcoin and several altcoi
Why Bitcoin ETFs with ‘zero flows’ don’t mean what you think
Tom Mitchelhill7 hours agoWhy Bitcoin ETFs with ‘zero flows’ don’t mean what you thinkOver 2,000 United States ETFs see no inflows on any given day — something that’s “very normal,” says ETF analyst James S
Central Bank of Sudan Warns of Risks Associated With Cryptocurrency
Central Bank of Sudan Warns of Risks Associated With Cryptocurrency The central bank in crisis-stricken Sudan has warned residents dealing with cryptocurrencies that they face nume
Finder’s Bitcoin Prediction Report Expects BTC to Bottom at $13,676 and End the Year at $25,473
Finder"s Bitcoin Prediction Report Expects BTC to Bottom at $13,676 and End the Year at $25,473 According to the latest crypto prediction report published by the product comparison
Mad Money’s Jim Cramer Warns About Dogecoin — Says DOGE Is a Security, SEC Will Regulate
Mad Money"s Jim Cramer Warns About Dogecoin — Says DOGE Is a Security, SEC Will Regulate The host of Mad Money, Jim Cramer, has warned about dogecoin (DOGE). He said that the mem