Yield App

FRA was engaged by Cork Gully LLP, the court-appointed liquidators for bankrupt cryptocurrency platform Yield App Limited to provide forensic accounting and crypto subject matter expertise in support of liquidation proceedings.  

Integrating on-chain analysis, data analytics and forensic accounting to deliver clarity in the liquidation process

The liquidators needed to trace platform assets, identify key parties, and manage the complex disbursement of funds to creditors. To support the project, FRA’s multi-disciplinary team:

• Recovered and processed multiple terabytes of company data, restoring databases and using Relativity to streamline document review
• Combined on-chain asset tracing with off-chain reviews of employee communications and company data to identify key individuals and to reconcile asset records
• Analysed massive troves of transaction data, pinpointing individuals and entities who made significant fund withdrawals immediately prior to the liquidation
• Delivered expert reports on the crypto market and platform operations, including a sworn affidavit, to inform the liquidators' legal strategy

FRA also performed a deep dive into the manner Yield App managed customer and company assets to ensure that all recoverable assets could be reconciled, ultimately leading to the identification of an extensive commingling of funds. The discovery of commingled funds served as the basis for the expert affidavit, submitted to the Supreme Court of Seychelles, outlining why traditional accounting methodologies would not result in the proper and fair treatment of the remaining assets to be returned to creditors.

A landmark judgment

Relying on FRA’s expert affidavit, the Supreme Court of Seychelles issued a landmark judgment in the liquidation of Yield App Limited, providing long-awaited guidance on how commingled crypto assets should be treated when competing creditor claims arise in an insolvency.

Read more from Cork Gully LLP here.