Yield App suspends activity and enters liquidation proceedings, citing FTX collapse

Yield App announced the immediate suspension of all platform activities as it enters liquidation proceedings. Community channels will also be suspended, while a support channel will remain open via the yield.app.

"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," the platform wrote on social media platform X.

Users attempting to access the self-described community-driven digital wealth management platform’s website are met with the same announcement on its homepage.

Yield App published its most recent blog post on June 25, which did not indicate a suspension was coming.

The app claims suspending activity was done to “ensure fair and equal treatment for all Yield App’s users and stakeholders.”

It also asked for patience and committed to releasing more information “at the earliest possible date.”

Yield App raised nearly $5 million in a hybrid funding round led by Alphabit and Digital Strategies in 2020.

The platform's native token, YLD, is down 58% over the past 24 hours off the back of the news.