Entropy, a decentralized crypto custody startup backed by Andreessen Horowitz (a16z), is winding down and plans to return remaining capital to buyers, based on founder and chief government Tux Pacific.

Pacific wrote on X over the weekend, “I’m winding-up Entropy.” They added, “After 4 years, a number of pivots, and two rounds of layoffs, I’ve determined to wind-up Entropy and return capital to our buyers.”

Crypto Automation Wager Fell Brief After Investor Suggestions

The shutdown follows a late-stage push in 2025 to reposition the corporate round a crypto automations platform, which Pacific described as “principally n8n/zapier/and so on for crypto,” with automated signing by way of threshold cryptography, safe computation utilizing trusted execution environments, and “deep AI integrations.”

That product path nonetheless did not clear a venture-style development bar. “After an preliminary suggestions request revealed that the enterprise mannequin wasn’t enterprise scale, I used to be left with the selection to discover a artistic means ahead or pivot as soon as extra,” Pacific wrote.

Entropy first drew consideration in 2022 when it raised $25M in a seed spherical led by a16z crypto, with participation together with Dragonfly Capital, Coinbase Ventures, Robotic Ventures, Ethereal Ventures, Variant and Inflection. The corporate had earlier raised a $1.95M pre-seed spherical.

Founder Seems Past Digital Property Towards Prescription drugs Analysis

At launch, Entropy pitched itself as a decentralized different to custody suppliers akin to Fireblocks and Coinbase, leaning on cryptographic approaches like multi-party computation to let customers management how funds might transfer, together with rule-based constraints.

Pacific additionally thanked a16z crypto and Man Wuollet for serving to steer the wind-down, calling their steerage “invaluable.”

The closure lands in a harder funding local weather for early-stage crypto startups. Crypto enterprise deal depend fell about 60% year-on-year in 2025, dropping to roughly 1,200 transactions from greater than 2,900 in 2024.

Subsequent, Pacific mentioned they plan to step again earlier than deciding what comes after Entropy. “My time in crypto could be coming to an finish, as I really feel myself drawn particularly into prescribed drugs,” they wrote, including they need to work on hormone supply and validate analysis on new estradiol drug formulations.

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