Citing FTX Losses, Crypto Platform Product App Shuts Down
Yield App, a Seychelles-incorporated crypto investment platform, announced on June 28 that it will cease all operations on its platform with immediate effect.
An official statement said, “The decision has been made to ensure fair and equal treatment for all product app users and stakeholders.”
“This follows the realization of portfolio losses by third-party hedge fund managers who seized product app assets on the failed cryptocurrency exchange FTX and expected ongoing litigation.”
Related: FTX addresses transfer of $8.3M one day before revised proposal deadline
What investors should know
According to an official statement, Yild App has suffered portfolio losses due to third-party hedge fund managers holding Yild App assets on FTX, which are “under ongoing litigation.”
Product app has blocked community sites, but support channel remains open to public through official website.
Cointelegraph contacted representatives of the Yield App for more information, but did not receive a response prior to publication.
RELATED: FTX Appeals Court's $175M Claim to Sell DCG Genesis
Differences in FTX exposure
Despite the announcement, previous statements from Yield App have cast doubt on the company's transparency regarding its exposure to FTX's fallout.
In the year On November 10, 2022, in a Discord message, Yild App's Tim Frost assured users that the crypto investment firm has “no significant exposure to FTX.”
An unnamed source told Cointelegraph that he was confused.
“All this makes no sense. I think it's amazing that 2 years ago they were affected by FTX and made a public statement.
Related: Small lenders at risk of new FTX bankruptcy growth
FTX sales continue.
This year, the bankrupt crypto exchange has seen many claims and sales of assets and resolved many disputes.
In February alone, FTX dropped 8 percent of its stake in artificial intelligence (AI) company Anthropomorphic, selling its European arm for $33 million and planning to sell Digital Protection for $500,000.
The ongoing asset liquidation efforts at the failed crypto exchange are part of the bankruptcy process.
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