The post a16z-backed Entropy shuts down, promises investors refunds appeared on BitcoinEthereumNews.com.

Entropy, the cryptocurrency custody startup that raised $25 million from Andreessen Horowitz and other prominent venture capital firms, is shutting down operations after four years and will return remaining capital to investors, its founder announced on X. Tux Pacific, the company’s founder and CEO, said that the decision followed several business pivots and two rounds of layoffs. “After four hard years working in crypto, I decided that the best I could do has already been done: it was time to close up shop,” Pacific wrote, adding that the company had been working on a crypto automation platform similar to workflow tools like n8n and Zapier but with blockchain-specific features, including automated signing through threshold cryptography and artificial intelligence integrations. Entropy went from custody solution to crypto automation Entropy initially positioned itself as a decentralized alternative to centralized crypto custodians such as Fireblocks and Coinbase when it launched in 2021.  Pacific, who identifies as transgender and has described themselves as an anarchist, founded the company after working at cryptography network NuCypher, where they developed expertise in advanced cryptographic techniques.  The company raised $1.95 million in a pre-seed round in January 2022, followed by the $25 million seed round led by a16z in June 2022. Other investors included Coinbase Ventures, Robot Ventures, Dragonfly Capital, Ethereal Ventures, Variant and Inflection, as well as angel investors Naval Ravikant, Sabrina Hahn and James Prestwich. At the time of its fundraising, Pacific, a self-taught cryptographer, reportedly stated that the company did not yet have a defined business model but was focused on building technology that would allow users to maintain control over their digital assets while benefiting from advanced cryptographic security. However, the company appears to have struggled to find product-market fit as it pivoted to developing a crypto automation platform.  After seeking feedback on this…

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Filed under: News - @ January 25, 2026 11:18 pm