Devenez Insider

EXCLUSIVE. Yield App bankruptcy: at least $300 million frozen

Friday, June 28, 2024

Launched in 2020, the company, which offers investments in DeFi, has just gone bankrupt. According to our information, more than 100,000 customers are affected.

It was a particularly rude awakening for Yield App customers. This Friday morning, the company, which offers investments in decentralised finance (DeFi) through a mobile app, announced that it was bankrupt and had started liquidation proceedings. All 70 employees have been made redundant.

On Twitter, the Seychelles-registered company explained that this situation was the result of losses linked to hedge funds caught up in the fall of FTX in 2022.

"All Yield App activities are suspended pending discussions with the liquidators. This decision has been taken to ensure fair treatment of all customers," the company explained.

According to our information, at least $300 million is frozen on Yield App, which has just over 100,000 customers. When questioned, several Yield App customers confirmed that they were unable to withdraw their funds.

Launched in 2020, Yield App was one of the few DeFi players, especially with its own token (YLD, which has plummeted by 60% in the last 24 hours), that managed to withstand the collapse of FTX. In recent months, the company led by Tim Frost had even become more aggressive outside of Asia, particularly in Europe.

According to our information, Yield App had started spending several hundred thousand dollars with media and influencer agencies in Europe, particularly in France. But it seems this was more of a desperate attempt than a real strategic development. Much to the dismay of users...

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This analysis is not investment advice. It has been prepared without taking into account your personal situation, particularly your financial situation, risk profile, and investment objectives.

Before investing in any product, investors should fully understand the risks involved and consult their own legal, tax, financial, and accounting advisors.

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