Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Entropy, a decentralized cryptocurrency management startup backed by Andreessen Horowitz (a16z), has announced the termination of its operation and plans to return the remaining capital to the fund, according to its founder and CEO Tux Pacific.
“I’m ending Entropy,” Tox Pacific posted on the X platform over the weekend. He added: “After four years, many changes, and two rounds of layoffs, I have decided to liquidate Entropy and return capital to our distributors.”
Crypto automation betting has not gone well after business reviews
The closure follows a late 2025 repositioning of the company near the cryptocurrency automation platform, which Pacific said is “n8n / zapier / etc of crypto,” with signatures using cryptography, secure computing using a trusted environment, and “great communication with AI.”
The management of these resources has not been successful in achieving the desired growth of similar investment projects. “After the first request for evaluation revealed that the business model did not reach the level of economic activity, I was left with only two options: find a way forward or change again,” Pacific wrote.
Entropy began attracting attention in 2022 when it raised $25 million in seed funding led by a16z crypto, with participation from Dragonfly Capital, Coinbase Ventures, Robot Ventures, Ethereal Ventures, Variant, and Inflection. The company has already raised $1.95 million in seed funding.
The founder is looking beyond the digital economy to medical research
At its launch, Entropy positioned itself as a popular alternative to custodians like Fireblocks and Coinbase, relying on encryption methods such as multi-party accounting to allow users to control how money is transferred, including regulatory restrictions.
Pacific also thanked a16z crypto and Jay Woollett for their help in managing the withdrawal process, describing their advice as “invaluable.”
This closure comes amid the most difficult fundraising for early cryptocurrency startups. The number of small businesses in the crypto sector is expected to drop by 60% annually in 2025, reaching around 1,200 businesses compared to over 2,900 in 2024.
Later, Pacific stated that it plans to back off for a while before they know what’s next after Project Entropy. “My time in the world of cryptocurrency may be over, because I feel very attracted to the pharmaceutical industry,” he wrote, adding that he would like to work in the supply of hormones and confirm the research of new estradiol drugs.
A note The establishment of a cryptocurrency custodian supported by a16z will close its doors and return investors’ money appeared for the first time Cryptonews Arabic.
