what does FTX have to do with it?
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The recent decision by Yield App to cease its operations and declare bankruptcy seems to be connected to significant losses stemming from its exposure to FTX, contrary to initial expectations of minimal impacts. This event raises important questions about the reliability of promises in decentralized finance and the broader implications for investors and market operators. Let’s see all the details below. The reasons behind the sudden bankruptcy of Yield App: what does FTX have to do with it? As anticipated, Yield App, a cryptocurrency investment platform registered in the Seychelles, announced on June 28 the immediate cessation of all operations. In an official statement, the company explained that this decision was made to ensure fair and equal treatment for all users and stakeholders. According to the statement, the portfolio losses were caused by third-party hedge fund managers who held Yield App’s assets on the FTX platform, now in bankruptcy and involved in various legal disputes. These funds are currently subject to ongoing legal disputes, further aggravating the financial situation of Yield App. Yield App has suspended the community communication channels, keeping only a support channel active through the official site to assist users. Attempts to obtain further details from the representatives of Yield App were unsuccessful, leaving many questions unanswered. In any case, the transparency of the company has been called into question, especially in light of previous reassurances. In a Discord message on November 10, 2022, Tim Frost of Yield App had stated that the company did not have significant exposure to FTX. This statement is now contested, creating confusion among users. An anonymous source has expressed perplexity about the situation, highlighting the strangeness of being hit by FTX after two years from the collapse. FTX and the sale of assets In 2024, FTX continued to liquidate its assets…
Filed under: News - @ June 28, 2024 10:16 pm