Crypto Firm Entropy Calls It Quits, Plans Full Investor Refunds
Entropy, a startup that attempted to construct a safer strategy to maintain and transfer crypto, is shutting down and sending most a refund to traders.
The firm’s chief mentioned the enterprise couldn’t attain the scale traders wished. Reports say the crew will return roughly $25–$27 million that had been put into the challenge.
What Happened To Entropy
According to reports, Entropy started with instruments for decentralized custody geared toward massive holders who wished extra management.
Over time the group modified course and tried to construct automation options that will make crypto workflows simpler.
The firm raised capital from well-known backers, together with Andreessen Horowitz and Coinbase Ventures. It ran for about 4 years and weathered two rounds of layoffs because the crew examined totally different concepts.
In a Saturday submit on X, Entropy founder and CEO Tux Pacific mentioned the crypto automation platform has reached the end of the road after years of looking for a workable future.
I’m winding-up Entropy.
After 4 years, a number of pivots, and two rounds of layoffs, I’ve determined to wind-up Entropy and return capital to our traders.
For the latter half of 2025, the Entropy crew was arduous at work on a crypto automations platform (mainly n8n/zapier/and so on…
— tux pacific (@__tux) January 24, 2026
Decision To Return Capital
Two clear info pushed the transfer. First, consumers and clients didn’t develop quick sufficient for the sort of return enterprise backers anticipate.
Second, the crew struggled to discover a regular, repeatable enterprise mannequin that might help speedy development and rent plans.
Leaders tried product tweaks and new instructions, however the tempo of change stayed sluggish and income didn’t climb as hoped. In some circumstances the product was stored alive by small wins; in others it felt stalled.
Investors will get again many of the cash they put in. That makes this shutdown cleaner than some collapses the place person funds have been in danger.
Reports say refunds can be dealt with by formal steps and planners are figuring out the small print.
The firm’s founder has advised they might shift their profession focus away from crypto, presumably into fields like medical analysis, although that path is just not sure.
Featured picture from Pexels, chart from TradingView
