Yield App Closure Linked to FTX Collapse
Yield App, backed by AGE Crypto and Alphabit, recently announced its shutdown due to losses associated with the collapse of FTX. The decision to cease all activity and enter liquidation proceedings was revealed in a post on X on Jun. 28.
Yield App Founders and Business Model
Founded in 2020 by Tim Frost, Justin Wright, Jan Strandberg, and Jason Corbett, Yield App positioned itself as a comprehensive crypto wealth platform offering interest earnings, cryptocurrency asset trading, and swapping services. The firm is now facing challenges in retrieving its funds stuck on the FTX exchange.
FTX Scandal and Impact on Yield App
The closure of FTX in November 2022 due to alleged embezzlement and misappropriation of customer funds had a significant impact on Yield App. Reports suggest that Yield App’s funds became inaccessible on FTX as a result of mismanagement by Swiss hedge fund Tyr Capital Partners, further complicating the situation for the platform.
