Liquidators appointed to Yield App to oversee Insolvency Proceedings
Mahé, Seychelles 1 July 2024 – Yield App, the digital assets platform, was placed into liquidation with effect from 1 July 2024. Cork Gully were appointed as liquidators to oversee the winding-up process in the Seychelles. The mandate also entails Cork Gully being engaged to wind up the fund of funds, TGT LP, in the Cayman Islands.
Yield App processed over $2.5b of transactions and had over 105,000 registered users, supporting over 18 tokens and 80+ swap pairs. It had marketed itself as a one-stop crypto wealth platform where customers could earn interest, buy and swap between cryptocurrency assets. It had invested assets in different strategies including staking platforms and crypto investment funds.
Liquidators from Cork Gully have been tasked to manage the insolvent liquidation in accordance with legal requirements and best practices. The case is thought to be one of the first crypto platform insolvency matters under the International Business Companies Act (Seychelles) and certainly the largest.
The primary role of the Liquidators is to take control of the assets of the Company, investigate and evaluate any claims that the Company may have, and to ensure an equitable distribution of assets to creditors and stakeholders; thereafter, formally winding up the Company’s affairs.
The Liquidators are empowered to investigate the circumstances leading to the Company’s failure and review its operations and transactions regarding Company assets. Cork Gully are committed to conducting the liquidation in a thorough, fair and transparent manner, maintaining open communication and providing regular updates to creditors, including a highly-engaged committee of creditors.
Substantial progress has already been made to assess Yield App’s financial affairs, and significant assets have already been recovered. Investigations include traditional asset tracing and dispute resolution, as well as on-chain analysis of blockchain transactions.
The Liquidators are keen to return value to creditors in a timely manner and have set a claims bar date for creditors to submit their claims by 20 December 2024, in order to facilitate an early interim distribution of assets.
“We understand the significance of our role in overseeing Yield App’s insolvent liquidation, and we are cognizant of the concerns and financial distress of stakeholders,” said Hadley Chilton, Joint Liquidator at Cork Gully LLP. “Our multi-disciplinary team is dedicated to upholding the highest standards as we navigate this complex process, to obtain the best possible outcome for creditors. From the outset, we have been considering how we could accelerate distributions to creditors, where possible.”
About Cork Gully: Cork Gully is an advisory and financial services firm specialising in restructuring and special situations, such as corporate and fund wind downs. Founded in 1906, the firm has offices in London, Luxembourg, Cayman Islands, Mauritius, Guernsey, Jersey, Switzerland and the Middle East.
Learn more about Cork Gully at www.corkgully.com.
