- Entropy is shutting down after 4 years and returning capital to traders as a result of its newest product, a crypto automation platform, failed to satisfy enterprise scaling expectations.
- The startup raised roughly US$27 million in funding from high-profile backers like a16z and Coinbase Ventures however in the end determined to shut reasonably than try one other pivot.
- Founder Tux Pacific is stepping away from the crypto business to probably discover pharmaceutical analysis following a major 60% decline in crypto enterprise offers throughout 2025.
Entropy, a decentralised custody startup backed by Andreessen Horowitz, is shutting down and returning remaining capital to traders, founder and CEO Tux Pacific stated on X.
Pacific stated the corporate is closing after 4 years of labor that included a number of pivots and two rounds of layoffs.
Notably, Entropy’s most up-to-date product was a crypto automation platform, one thing much like what customers do with platforms like n8n or Zapier for on-chain workflows, with automated transaction signing utilizing threshold cryptography, safe execution utilizing trusted execution environments (TEEs), and AI integrations.
However Pacific said suggestions confirmed the enterprise wouldn’t scale to enterprise expectations, leaving one other pivot or a shutdown.
I used to be left with the selection to discover a artistic means ahead or pivot as soon as extra. After 4 laborious years working in crypto, I made a decision that the most effective I might do has already been achieved: it was time to shut up store.
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Entropy Shuts Down After Elevating $25M
Entropy raised a US$25 million (AU$38.25 million) seed spherical in June 2022, led by a16z crypto, with participation from Dragonfly Capital, Coinbase Ventures, Robotic Ventures, Inflection and different high-profile VCs.
It had raised a US$1.95 million (AU$2.98 million) pre-seed in January 2022, bringing complete funding to roughly US$27 million (AU$41.31 million).
Earlier than pivoting to AI and automation, the corporate was initially marketed as a decentralised various to custodians comparable to Fireblocks and Coinbase, so the unique pitch relied on multi-party computation and associated cryptographic strategies to let customers handle funds throughout blockchains whereas setting guidelines on how belongings might transfer, together with time-based constraints.
The shutdown comes throughout a weaker crypto enterprise cycle. Crypto enterprise deal rely fell about 60% in 2025 to roughly 1,200 transactions from greater than 2,900 in 2024.
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