Crypto wealth management platform Yield App, backed by AGE Crypto and Alphabit, announced its shutdown on June 28, 2024, due to losses linked to the FTX collapse. Yield App, founded in 2020 by Tim Frost, Justin Wright, Jan Strandberg, and Jason Corbett, marketed itself as a comprehensive crypto wealth platform.
This closure comes as Yield App prepares for liquidation proceedings, citing portfolio losses from third-party hedge fund managers who held assets on the now-defunct FTX exchange. Earlier reports suggested the involvement of Swiss hedge fund Tyr Capital Partners, known for allegedly ignoring internal risk limits.
FTX collapsed in November 2022 amid allegations of embezzlement, with founder Sam Bankman-Fried sentenced to 25 years in prison and ordered to reimburse $11 billion. Yield App’s situation underscores the cascading impacts of FTX’s downfall on the crypto sector.
Yield App’s closure highlights the ongoing challenges in the crypto industry and the importance of stringent risk management practices.
