Decentralized Custody Startup Entropy Shuts Down After Four Years

Entropy, a decentralized custody startup, has announced its closure after four years of operation. According to NS3.AI, the company, which was supported by a16z and other significant investors, specialized in multi-party computation and cross-chain asset management. Despite raising approximately $27 million, Entropy determined that its business model was unable to support venture-scale growth. This decision underscores the increasing challenges faced by crypto startups since 2025.