Yield App, a cryptocurrency wealth management platform backed by AGE Crypto and Alphabit, has declared its closure due to losses associated with the collapse of FTX.
Yield App, which said in a post on X on June 28 that it was closing “all activity” as it “prepares to enter liquidation proceedings.”
The platform, which presented itself as a “one-stop crypto wealth platform where you can earn interest, buy, and swap between your cryptocurrency assets” when it was founded in 2020 by Tim Frost, Justin Wright, Jan Strandberg, and Jason Corbett, claims the biggest reason for the move is its attempts to get its money from the now-defunct exchange FTX.
“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,”
Yield App stated in its X post.
Yield App looks to be the most recent cryptocurrency company affected by the aftermath of the FTX crash. Allegations of fraud and misappropriation of billions of dollars in customer funds involving FTX’s founders and connected hedge fund Alameda Research led to the company’s bankruptcy in November 2022.
However, Yield App’s connection to FTX is complicated and indirect. The platform’s funds appear to be stuck on FTX due to its ties to Tyr Capital Partners, a Swiss hedge fund that has been accused of “criminal” mismanagement.
Tyr allegedly failed to properly inform its investors about its exposure to FTX and internal risk limits. Although Yield App was not a direct client of Tyr, it was a client of TGT, a fund that had invested with Tyr on behalf of Yield App and whose directors included Wright and Corbett, the co-founders of Yield App.
Yield App has asked for the patience of its valued customers as it works with its advisors. The company jointly commits to releasing further information, including detailed FAQs, as soon as possible.
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