Crypto investment platform, Yield App Ltd, has announced the suspension of all operations on its digital wealth platform, yield.app, as it prepares for liquidation proceedings. This decision comes after significant portfolio losses due to third-party hedge fund managers who had custody of Yield App assets on the now bankrupt cryptocurrency exchange FTX.

The company has assured its users that a support channel will remain accessible to assist during this transitional period. The announcement has sparked mixed reactions from the crypto community, with some expressing shock and questioning the company's transparency, especially in light of previous reassurances about its exposure to FTX.

The liquidation of Yield App's assets comes amidst FTX's bankruptcy proceedings, which has had severe repercussions for several firms. Last year, Galois Capital closed its flagship fund due to substantial exposure to FTX, losing nearly half of its capital. Despite this, the broader market remains optimistic, viewing these events as isolated incidents rather than indicative of the overall health of the DeFi and BRC 20 sectors.