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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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