Yield App, a decentralized finance (DeFi) platform, announced its bankruptcy and the suspension of all its operations. The move follows significant losses linked to hedge funds involved in FTX's 2022 bankruptcy, according to the company.
Yield App declares bankruptcy because of FTX
Yield App, a platform that offered investments in decentralized finance (DeFi), suddenly announced the suspension of all its activities and entering liquidation proceedings.
According to Yield App, this situation is mainly the result of hedge fund losses linked to the bankruptcy of FTX in 2022. On X, Yield App explains that this decision was made “to ensure fair and equitable treatment for all users and stakeholders of Yield App.”
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
According to information provided by Yield App, these fund managers are already the subject of several legal proceedings. The platform assures that it will communicate more information as soon as possible and asks users to be patient.
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According to information obtained by our colleagues at The Big Whale, More than $300 million is currently frozen on the Yield App platform and this situation affects more than 100,000 customers who are unable to withdraw their funds.
Faced with this alarming situation, several Yield App customers have expressed their frustrations and concerns on social networks. They claim to be unable to access their money, despite multiple withdrawal attempts.
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A situation which raises several questions
This massive blocking of funds raises many questions about the financial health of Yield App and the management of its clients' funds. The authorities have been informed and an investigation is underway to determine the causes of this bankruptcy and to protect the interests of users.
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The announcement of the liquidation procedure had an immediate impact on the price of YIELD App (YLD). Its price is down 55% over 24 hours, going from $0.0024 to $0.00100.
The bankruptcy of Yield App is a new setback for the cryptocurrency sector, which had already been weakened in the past by the fall of Terra Luna, Celsius and FTXThis case highlights the risks associated with investing in cryptocurrencies, particularly when it involves going through centralized intermediaries.
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