Dear Users,
We appreciate your time and attention as we provide this comprehensive update on the current status of YieldNodes. Please review the following details carefully for the latest insights.
Regulatory Challenges & YieldNodes Pro
The launch of YieldNodes Pro remains contingent on resolving outstanding regulatory issues related to YieldNodes. When we initially established YieldNodes in around 2019 virtual assets business operations were largely unregulated, and the asset class represented a niche and relatively unknown market. However, rapidly evolving compliance standards now dictate otherwise.
Moreover, persistent external attacks from various groups and individuals have further complicated these regulatory efforts. This is a significant factor in why major financial institutions are hesitant to regulate projects like YieldNodes Pro. Our goal is to achieve compliance and ensure the long-term viability of our platform
Investigations & Compliance
Currently, YieldNodes has been the subject of warnings solely related to the lack of banking regulation and brought about by unwarranted complaints to regulators against us, despite the fact that YieldNodes has never engaged in banking activities.
These warnings, while carrying no legal consequences, do pose reputational challenges that impact coin values and ecosystem stability. It is important to reiterate that YieldNodes has always focused on masternoding and server rentals, and these operations have remained uninterrupted.
To enhance transparency, we have long made all active masternodes publicly accessible via an audit site, demonstrating that masternoding continues to support and secure the networks.
đź”— Access the Audit site here
The days when masternodes offered attractive rewards with high returns are long gone, replaced by dwindling participation and decreasing liquidity. Many of the once-popular masternode projects have either collapsed, been abandoned, or are barely surviving.
A prime example of this decline is Sapphire (SAPP). Once seen as a promising masternode coin, SAPP has suffered an extreme loss of value. At its peak, sources listed its all-time high at $0.962609 on August 11, 2022. However, as of 2025, its value has plummeted to mere cents, demonstrating the sheer volatility of the market and the negative sentiment. It is imperative to note that coins were bought at market prices and masternoded as per agreement, while profits were exchanged into cryptocurrency and paid out.
YieldNodes has only used Bitcoin as a medium of exchange, as Bitcoin itself is not masternodable.
When coin values appreciate, we are prepared to distribute rewards accordingly. An alternative approach would be the direct disbursement of coins, allowing users the flexibility to sell them independently. This alternative plan is still under consideration.
Legal Action Against Chainalysis
We have initiated legal action against Chainalysis due to its defamatory claims labeling YieldNodes as a scam, undermining its growth and coin appreciation early on, which resulted in significant devaluation of assets over time and severe financial losses, culminating in massive selloffs.
Chainalysis’s close ties to several exchanges blacklisting withdrawals and deposits hindered YieldNodes’ operations substantially and caused cascading losses and issues that eroded trust across the masternoding scene and led to severe sell-offs, further eroding values.
Despite repeated attempts to engage with Chainalysis, the only response we received was their assertion that YieldNodes’ high returns and Trustpilot reviews were indicative of fraudulent activity. This unsubstantiated and damaging claim exacerbated the market downturn, leading to compounded losses.
As a result, we filed a lawsuit against Chainalysis on behalf of our users.
đź”— Lawsuit Chainalysis vs YieldNodes
The lawsuit was initially dismissed, with the court arguing that we had not sufficiently proven that YieldNodes is NOT a scam. This is a clear reversal of the fundamental principle of “innocent until proven guilty,” and we strongly oppose this stance.
Furthermore, Chainalysis leveraged Anti-SLAPP laws, designed to protect smaller companies from corporate intimidation, to shield themselves from liability. They argued that their classification of YieldNodes as a scam falls under their right to free speech, despite their purported role as an objective, evidence-based rating agency.
Adding further insult, Chainalysis demanded around $500,000 in legal fees from us.
We have since filed an appeal and are actively seeking partners to help finance this legal battle. However, legal proceedings take time, and we remain steadfast in our fight for justice on behalf of all our users.
It’s imperative to note that until the legal issues are clarified, we are severely restricted in our ability to share meaningful developments.
Challenges & Strategic Considerations
At this moment, our approach remains reactive rather than proactive, as every announcement or step forward invites additional resistance.
YieldNodes has been publicly and privately harassed for refusing to abandon this effort. Surrendering and declaring insolvency would have been the easier route, yet we continue to fight because we believe in the integrity of our mission.
Regrettably, rather than rallying together, some community members have actively worked against efforts to restore value. This is one of the primary reasons we must keep recovery plans confidential—disclosing them prematurely only invites sabotage.
NFTs & Community Attacks
As an example, YieldNodes launched NFTs at zero profit to management, solely to help users trade assets and revitalize the market. These NFTs gained traction and achieved promising valuations, particularly on OpenSea.
However, a faction of militant users coordinated mass complaints to OpenSea, leading to the delisting of these NFTs. This action resulted in financial losses and reputational harm—with no benefit to those responsible but clear detriment to everyone else.
Coin Devaluation & Internal Attacks
Similarly, the masternoded and staked coins were always publicly disclosed with full transparency. However, rather than supporting these assets, some individuals actively spread negative sentiment, causing additional harm.
Imagine an individual holding Apple stock, only to publicly devalue it by spreading misinformation—a clear case of self-sabotage. This is the same destructive behavior we have witnessed within our community.
Commitment to the Future
This is not an admission of defeat—we remain engaged on multiple fronts and refuse to back down. However, we are under intense scrutiny, and every move must be calculated to restore value while navigating systemic roadblocks.
Years after Chainalysis false and malicious accusations against us, we are still here and still remain committed to our community and to rectifying the harm done by these malicious attacks on our reputation. Our actions could not be further from what a “scam” operator would have done.
We urge the YieldNodes community to stand with us during these challenging times. If full support is not possible, we at least ask that detractors cease actively working against their own interests. Anger and destruction have never yielded positive results.
We will continue to provide updates as developments unfold.
