Yield App suspends activity ahead of liquidation proceedings

Yield App has halted all platform activities as it enters liquidation proceedings.

This is according to news just in from Yield App Ltd, a Seychelles-incorporated limited liability company behind the digital wealth platform.

“With immediate effect, all activity on http://yield.app will be halted as Yield App consults with liquidators. This decision has been made to ensure fair and equal treatment for all Yield App’s users and stakeholders,” the company wrote in an announcement.

Yield App halt linked to FTX collapse

According to the details also shared on the Yield App X account, the decision to suspend activities comes after the company realized portfolio losses connected to the collapsed crypto exchange FTX. The news comes as the market navigates a bearish patch after a decent uptick from early 2023.

On Friday, Yield App said it incurred losses via third-party hedge fund managers, who held the DeFi protocol’s assets on FTX. These entities are “subject to ongoing litigation,” the Yield App team noted.

“Yield App asks for the patience of its valued customers as it works with its advisors, with whom it jointly commits to releasing further information, including detailed FAQs, at the earliest possible date,” the statement continued.

Users are informed that as the platform works out the next steps, all community channels will also remain suspended. However, there will be a support channel via the yield.app.

The project has also added the same notice to its website.

Yield token price plummets

Incidentally, Yield App’s X account espoused the platform’s benefits to users, with a highlight of its “Buy-low product.” The platform asked potential customers to check out its newsletter the Yield App Pro Insider – the latest publication just this week on June 25, 2024.

YLD, the native token of the Yield App protocol, fell sharply after the news.

According to data from CoinGecko, YLD price was at $0.018 and down 55% in the past 24 hours. The token’s value reached an all-time high of $1.29 on February 16, 2021 and latest plunge sees its value down nearly 99% from that high.

The post Yield App suspends activity ahead of liquidation proceedings appeared first on Invezz