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.”

What 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.

Cointelegraph contacted Yield App’s representatives for more information but did not receive a response before publication.

Discrepancies 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, Yield App Tim Frost reassured users that the crypto investment firm had “no significant exposure to FTX.”

A source wh 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.”

FTX 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.