Case summary
What happened
Yield App publicly launched in February 2021 as a digital asset wealth platform offering yield products. On 28 June 2024 it announced the suspension of all platform activity ahead of liquidation, citing realized portfolio losses through third-party hedge fund managers that had held assets on FTX. Yield App Limited entered insolvent liquidation effective 1 July 2024, with joint liquidators appointed from Cork Gully LLP. In 2025 the liquidators reported an interim creditor distribution and later published Seychelles court guidance on the treatment of extensively commingled customer cryptoassets.
Customer result
Customer outcome
Claims ongoing
No reliable universal recovery percentage is established. Customer outcomes depend on the joint liquidators' asset realization, litigation, claims adjudication, and distribution process.
- Estimated recovery
- unknown liquidation dependent
- Repayment started
- —
- Repayment completed
- —
- Confidence
- High
Asset treatment
Terms risk
Varies by product
The earlier unknown classification is replaced because the 2024 terms and 2025 court guidance now support a product- and tracing-dependent interpretation. Most commingled claims were treated as unsecured, but the reported judgment did not eliminate every possible proprietary claim.
- Affected product
- Yield App digital wealth, Earn, managed yield and withdrawal-pool balances
- Confidence
- High
Yield App terms described customer digital assets as lent to the platform and warned that users could become general unsecured creditors if the company could not meet its obligations. The liquidators later reported that extensive wallet commingling led the Seychelles court to adopt pari passu treatment for most claims, while a very small group of assets that had not entered pooled wallets might support different proprietary treatment.
Known unknowns
Uncertainty
The liquidation remains ongoing. Final customer recovery depends on additional asset realization, litigation and claim treatment. The court guidance also leaves a narrow possibility that some assets never swept into pooled wallets may receive different proprietary treatment.
Chronology
Historical record
Yield App publicly launches
Yield App opened public registrations and launched its digital asset wealth platform after an early-access period.
Launch date is supported by Yield App's own public-launch announcement.
Yield App suspends all platform activity
Yield App announced the immediate suspension of all activity on the platform as it prepared to enter liquidation proceedings, citing portfolio losses connected to third-party hedge fund managers that had held assets on FTX.
The suspension preceded the formal effective date of liquidation by several days.
Yield App enters insolvent liquidation
Yield App Limited entered insolvent liquidation and Stephen Cork and Hadley Chilton of Cork Gully LLP were appointed joint liquidators.
Liquidation is recorded under restructuring_started because the event taxonomy has no dedicated liquidation-start enum; the platform status remains operations_ended.
Liquidators report first interim creditor distribution
Cork Gully reported that the liquidators had distributed 14 cents on the U.S. dollar to creditors in cryptocurrency within six months of appointment, while further recovery work continued.
The date is the liquidators' public confirmation date, not necessarily the exact transfer date.
Seychelles court clarifies treatment of commingled Yield App cryptoassets
The liquidators reported that the Seychelles Supreme Court directed a pari passu distribution approach for extensively commingled cryptoassets, while leaving open a narrow possibility of proprietary claims for assets that had not entered pooled wallets.
The date is the liquidators' publication date for the judgment summary.
Source record
Evidence dossier
Filter by claim, reliability, source type, and whether evidence is linked to a specific event.
customer outcome
2 sourcesLiquidators appointed to Yield App to oversee insolvency proceedings
Cork Gully LLP · 2024-08-29
Joint liquidator announcement confirming liquidation effective 1 July 2024 and the creditor claims process.
Cork Gully reports rapid asset recovery and interim distribution in Yield App liquidation
Cork Gully LLP · 2025-05-02
Liquidator report stating that an early interim distribution of 14 cents in the U.S. dollar was made entirely in cryptocurrency and that further recoveries remained in progress.
Event
2 sourcesYield App suspends activity and enters liquidation proceedings, citing FTX collapse
The Block · 2024-06-28
Contemporaneous reporting quoting Yield App's announcement that all platform activity was suspended immediately.
Yield App Limited in liquidation
Yield App / Joint Liquidators · 2024-07-02
Official notice states that Yield App commenced insolvent liquidation and identifies the appointed joint liquidators.
failure reason
1 sourcesYield App suspends activity ahead of liquidation proceedings
Invezz · 2024-06-28
Reports the platform statement linking the suspension to portfolio losses through third-party hedge fund managers that held assets on FTX.
launch date
1 sourcesYIELD App announces full public launch
Yield App · 2021-02-11
Yield App's own announcement states that the public launch occurred on 12 February 2021.
ownership
1 sourcesSeychelles Supreme Court clarifies treatment of commingled cryptoassets in Yield App liquidation
Cork Gully LLP · 2025-12-09
Liquidator summary of the court's guidance that widespread commingling generally required pari passu unsecured-creditor treatment, subject to a narrow category of potentially traceable assets.
terms risk
1 sourcesYield App terms and conditions
Yield App · 2024-04-16
Terms state that users lend digital assets and may become general unsecured creditors if Yield cannot pay its debts.
No evidence records match the current filters.
Comparative records