[Decentralized custody startup Entropy, backed by a16z, announces shutdown and returns funds to investors] Odaily Planet Daily reports that Entropy, a decentralized custody startup led by a16z, has announced its closure and the return of remaining funds to investors. Entropy's founder and CEO, Tux Pacific, stated on the X platform that the decision was made after four years of product development, multiple business adjustments, and two rounds of layoffs. Entropy was positioned as an alternative to centralized crypto custody institutions, utilizing technologies such as multi-party computation, threshold cryptography, and trusted execution environments to provide users with cross-chain asset management and automated signing services. In 2022, the company completed a $25 million seed round led by a16z, with participation from Dragonfly, Variant, Coinbase Ventures, and others, raising a total of approximately $27 million. Pacific noted that recent research revealed the business model was unable to sustain venture capital-level growth, leading to the decision to cease operations and return capital. This event also reflects the tightening survival environment for crypto startups since 2025. (TheBlock)