{"id":3277,"date":"2026-07-28T17:37:21","date_gmt":"2026-07-28T17:37:21","guid":{"rendered":"https:\/\/xrpfaucet.site\/?p=3277"},"modified":"2026-07-28T17:37:21","modified_gmt":"2026-07-28T17:37:21","slug":"over-60-crypto-firms-and-projects-fold-in-2026-as-bankruptcies-bear-market-and-hacks-rip-industry-apart","status":"publish","type":"post","link":"https:\/\/xrpfaucet.site\/?p=3277","title":{"rendered":"Over 60 Crypto Firms and Projects Fold in 2026 as Bankruptcies, Bear Market and Hacks Rip Industry Apart"},"content":{"rendered":"<div class=\"crypto-article\">\n<p>\ud83d\udcf0 <strong>Exclusive Crypto News &#038; Analysis:<\/strong> Stay ahead with the latest developments in the cryptocurrency and blockchain space.<\/p>\n<p>\ud83d\udcc8 <strong>Market Update:<\/strong> Real-time price movements, technical analysis, and trading signals.<\/p>\n<div>\n<div class=\"@container mb-(25px) rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-(6px) !bg-success-10 p-3 @(420px):p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-(19px) !text-(#1c1c1c) md:text-(20px)\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-(#434248)\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Over 60 crypto projects shut down or filed bankruptcy from January to July 2026, led by BitMEX\u2019s Sept. 23 closure.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-(#434248)\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Security exploits drove closures including Step Finance\u2019s $40 million hack and Radiant Capital\u2019s $50 million 2024 breach.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-(#434248)\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">AscendEX cited failed EU MiCA licensing, while Tally\u2019s founder linked its closure to looser SEC enforcement.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>The past several months have exposed the part of the crypto industry that rarely gets attention during bull markets. Since bitcoin retreated from its October 2025 all-time high, balance sheets have tightened, hiring has slowed, <a href=\"https:\/\/news.bitcoin.com\/crypto-com-announces-layoffs-while-expanding-ai-capabilities\/\">layoffs are abundant<\/a>and funding rounds that once closed in weeks have stretched for months <a href=\"https:\/\/x.com\/fintechfrank\/status\/2081744016597496229?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">or disappeared altogether.<\/a><\/p>\n<p>Across the industry, networks, projects, and startups have quietly shut their doors, while crypto-focused venture capital activity has cooled to levels that reflect far more caution than conviction.<\/p>\n<p>The closures span every corner of the industry. Exchanges, layer-one (L1) and layer-two (L2) blockchains, wallets, NFT platforms, DAO tooling firms, and blockchain games all appear on the list. The stated causes vary just as widely: security exploits, failed licensing applications, unsustainable token economics, market-making scandals, and, in several cases, teams that simply said the product never found an audience.<\/p>\n<h2>Exchanges and Trading Platforms<\/h2>\n<p>BitMEX, the derivatives exchange co-founded by Arthur Hayes in 2014, <a href=\"https:\/\/news.bitcoin.com\/bitmex-closes-doors-as-the-perpetual-swap-it-invented-rules-rivals\/\">announced on July 23<\/a> that it will cease operations at 04:00 UTC on September 23. The exchange invented the crypto perpetual swap and cited a strategic review rather than a specific trigger. AscendEX stopped trading on July 1 and <a href=\"https:\/\/ascendex.com\" target=\"_blank\" rel=\"noopener noreferrer\">confirmed its shutdown<\/a> on July 11, pointing to a failed bid for EU MiCA licensing, a collapsed liquidity partnership, and weak market conditions.<\/p>\n<p>Two days ago, Bitcoin.com News reported that BitMart had <a href=\"https:\/\/news.bitcoin.com\/bitmart-begins-shutdown-process-as-crypto-exchange-sets-final-trading-deadline\/\">started a phased shutdown<\/a> of its global trading platform, a process that typically unfolds over weeks as customer withdrawals, open positions, and operational obligations are gradually wound down. The exchange pointed to operating conditions, the broader market environment, and its long-term strategic direction as the reasons behind the decision, offering few details beyond that brief explanation.<\/p>\n<p>Odos, a decentralized exchange (DEX) aggregator, <a href=\"https:\/\/news.bitcoin.com\/defi-aggregator-odos-closes-doors-leaves-users-5-days-to-move-locked-funds\/\">said July 23 it would close all services<\/a> by July 30 without detailing a reason. Luck.io, a Solana-based casino, <a href=\"https:\/\/x.com\/luckio\/status\/2047642254681231545?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">told users to withdraw immediately<\/a> on April 24 amid controversy over its fairness claims and its ties to the Rollbit exchange.<\/p>\n<h2>Bankruptcies<\/h2>\n<p>Movement Labs, developer of the Movement L1 blockchain, <a href=\"https:\/\/www.pacermonitor.com\/public\/case\/65708680\/MVMT_Labs,_Inc\" target=\"_blank\" rel=\"noopener noreferrer\">filed for Chapter 11 bankruptcy<\/a> on July 21 after a market-making partner sold roughly 66 million MOVE tokens following its exchange listing, triggering investigations and a price collapse. Alongside this, Blockfills, an institutional trading platform, <a href=\"https:\/\/www.blockfills.com\/2026\/03\/15\/blockfills-statement-on-important-company-updates-and-chapter-11-bankruptcy-filing\/\" target=\"_blank\" rel=\"noopener noreferrer\">filed for Chapter 11 on March 15<\/a> after a liquidity crisis tied to the February 2026 crypto market crash left it with $100 million to $500 million in liabilities exceeding its assets. Former bitcoin mining pool operator Poolin <a href=\"https:\/\/veritaglobal.net\/poolin\/document\/2618325260722000000000002\" target=\"_blank\" rel=\"noopener noreferrer\">also filed for Chapter 11<\/a> bankruptcy protection this month, marking another high-profile casualty.<\/p>\n<h2>Layer-One and Layer-Two Blockchains<\/h2>\n<p>Several infrastructure projects closed after concluding their networks lacked demand. Powerloom\u2019s founders <a href=\"https:\/\/docs.powerloom.io\/wind-down\/timeline\/\" target=\"_blank\" rel=\"noopener noreferrer\">ordered validators to shut down<\/a> nodes by June 16 following a strategic review, with the mainnet ceasing entirely by July 21 despite five years of development.<\/p>\n<p><a href=\"https:\/\/x.com\/botanix\/status\/2064420116578590941?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">Botanix wound down<\/a> its Spiderchain Bitcoin L2 on June 10 after one year, citing insufficient demand for Bitcoin DeFi. Hyli <a href=\"https:\/\/x.com\/hyli_org\/status\/2064678967035224555?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">shut down its zero-knowledge blockchain<\/a> the same day after two years. Sophon closed its zkSync-based L2 in late June after the chain, which had raised about $60 million, drew only 100 to 200 daily users and roughly $30 a day in fees; the team <a href=\"https:\/\/x.com\/Sophon\/status\/2070192257295335800\" target=\"_blank\" rel=\"noopener noreferrer\">said it would pivot<\/a> to building on Base.<\/p>\n<p>Swell sunset its Swellchain L2 on June 15 to <a href=\"https:\/\/www.swellnetwork.io\/post\/sunsetting-swellchain-from-l2-to-faro\" target=\"_blank\" rel=\"noopener noreferrer\">redirect resources<\/a> toward a new product called Faro. Milkyway shut down its Celestia-based staking chain on March 26, <a href=\"https:\/\/x.com\/milky_way_zone\/status\/2037020332775923746?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">citing low demand across the Celestia<\/a> and DeFi sectors. Mint Blockchain, a real-world-asset L1, <a href=\"https:\/\/x.com\/Mint_Blockchain\/status\/2044980026819617147?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">ceased operations<\/a> on April 17 without detailing a cause, giving users until October 20 to withdraw funds. Moreover, Polygon\u2019s zkEVM beta sequencer <a href=\"https:\/\/forum.polygon.technology\/t\/polygon-zkevm-mainnet-beta-sunset-claim-your-funds\/21856\" target=\"_blank\" rel=\"noopener noreferrer\">reached its planned end<\/a> on July 1.<\/p>\n<h2>DeFi Protocols<\/h2>\n<p>Radiant Capital\u2019s <a href=\"https:\/\/x.com\/RDNTCapital\/status\/2061457987441447041?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">community voted to wind down<\/a> its decentralized autonomous organization (DAO) and halt development on June 1, roughly 20 months after a $50 million exploit that the protocol said it could not recover from safely. Ionic Protocol <a href=\"https:\/\/x.com\/ionicmoney\/status\/2067518110635016213\" target=\"_blank\" rel=\"noopener noreferrer\">halted all operations<\/a> on June 18 over continued fallout from a 2025 exploit.<\/p>\n<p>Carrot Finance, a Solana lending protocol, <a href=\"https:\/\/news.bitcoin.com\/solana-yield-protocol-carrot-shuts-down-after-drift-exploit-drains-8m-in-tvl\/\">shut down on April 30<\/a> after an $8 million loss tied to the Drift Labs exploit left its reserves insolvent. Step Finance <a href=\"https:\/\/x.com\/StepFinance_\/status\/2025986934112145849?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">ended operations<\/a> on February 24 after a January 31 hack drained roughly $40 million from its treasury; Remora Markets, a related tokenized-perpetuals platform, closed the same day and began reimbursing holders.<\/p>\n<p>Polynomial, a derivatives exchange, <a href=\"https:\/\/x.com\/PolynomialFi\/status\/2022344918111494169\" target=\"_blank\" rel=\"noopener noreferrer\">force-closed all positions<\/a> on February 18 after its hybrid orderbook and automated market maker model failed to attract liquidity, with a full shutdown following March 3. Seamless Protocol disclosed that its leveraged token products on Base failed to gain traction <a href=\"https:\/\/x.com\/SeamlessFi\/status\/2076030957518520416\" target=\"_blank\" rel=\"noopener noreferrer\">and set a June 30 closure<\/a>with a proposal to distribute remaining funds to token holders.<\/p>\n<p>Everclear, a cross-chain liquidity protocol that had processed up to $500 million in monthly volume, <a href=\"https:\/\/x.com\/EverclearOrg\/status\/2057488000003477886\" target=\"_blank\" rel=\"noopener noreferrer\">wound down on May 21<\/a> after concluding it could not build a sustainable revenue model. Angle Protocol\u2019s community agreed to <a href=\"https:\/\/x.com\/AngleProtocol\/status\/2027021228691612041\" target=\"_blank\" rel=\"noopener noreferrer\">unwind its EURA and USDA stablecoins<\/a> over roughly a year, with 1-to-1 redemptions available through March 1, 2027.<\/p>\n<p>Ionic, Loopring\u2019s DEX and other DeFi products, and Ventuals, a Hyperliquid-based perpetuals platform that let vHYPE holders withdraw staked funds plus yield, also <a href=\"https:\/\/x.com\/ionicmoney\/status\/2067518110635016213\" target=\"_blank\" rel=\"noopener noreferrer\">closed during the period<\/a>alongside Dango, a perpetual DEX and L1 that stopped trading July 29 and is shutting its chain by August 13 after concluding there was no path to profitability.<\/p>\n<h2>Wallets<\/h2>\n<p>Security exploits drove several wallet shutdowns. Secondfi, a Cardano wallet, <a href=\"https:\/\/x.com\/secondfiapp\/status\/2079788851204329886\" target=\"_blank\" rel=\"noopener noreferrer\">announced July 22<\/a> it would wind down after attackers stole 16.1 million ADA, worth about $2.4 million, in June. Ctrl Wallet, formerly XDEFI, <a href=\"https:\/\/x.com\/Ctrl_Wallet\/status\/2080478956776825310\" target=\"_blank\" rel=\"noopener noreferrer\">set an August 3 closure<\/a> after a June 23 exploit targeting Cardano-based wallets in its system.<\/p>\n<p>Xenea <a href=\"https:\/\/x.com\/Xenea_io\/status\/2073570863237173596\" target=\"_blank\" rel=\"noopener noreferrer\">gave users 72 hours to export private keys<\/a> before discontinuing its multi-chain wallet on July 9. Leap Wallet <a href=\"https:\/\/x.com\/leap_wallet\/status\/2039729267685376026\" target=\"_blank\" rel=\"noopener noreferrer\">confirmed on April 2<\/a> that it would shut down May 28, telling Cosmos users to export seed phrases and migrate elsewhere. Magic Eden removed its wallet app from stores on April 1 and <a href=\"https:\/\/news.bitcoin.com\/nft-marketplace-magic-eden-streamlines-operations-to-focus-on-solana-and-dicey-gambling\/\">fully decommissioned it<\/a> by May 1 to refocus on its core NFT marketplace.<\/p>\n<h2>NFTs, Gaming and Other Platforms<\/h2>\n<p>Foundation, an NFT marketplace, <a href=\"https:\/\/news.bitcoin.com\/digital-art-nft-marketplace-foundation-closes-after-failed-acquisition-in-early-2026\/\">closed on April 15<\/a> after a planned sale to Blackdove fell through. Intergaze, a Cosmos NFT chain, <a href=\"https:\/\/forum.initia.xyz\/t\/intergaze-rollup-wind-down-notice\/432\" target=\"_blank\" rel=\"noopener noreferrer\">gave users 14 days<\/a> to withdraw before migrating remaining assets to Stargaze. Pudgy Party, Pudgy Penguins\u2019 mobile game, closes July 14 as the company <a href=\"https:\/\/x.com\/PlayPudgyParty\/status\/2065555998031384917\" target=\"_blank\" rel=\"noopener noreferrer\">redirects resources to its newer title<\/a>Pudgy World.<\/p>\n<p>Fishing Frenzy, which had roughly 10 million installs and $1 million in revenue, closes June 25 <a href=\"https:\/\/x.com\/FishingFrenzyCo\/status\/2066376668357566509\" target=\"_blank\" rel=\"noopener noreferrer\">after its developer said<\/a> the game never found a sustainable product-market fit. Gensokishi Online, a Polygon-based MMORPG, <a href=\"https:\/\/genso.game\/en\/news\/detail\/?seq=6d446f344c2f4c347535474b715656685445424872673d3d\" target=\"_blank\" rel=\"noopener noreferrer\">shut down on April 30<\/a> after running at a monthly loss of roughly 8 million yen. Pixel Heroes Adventure\u2019s studio <a href=\"https:\/\/x.com\/GamingDailyx\/status\/2044399238940086467\" target=\"_blank\" rel=\"noopener noreferrer\">dissolved entirely<\/a> on April 15, laying off all staff.<\/p>\n<p>Fantasy.top, an onchain trading card game <a href=\"https:\/\/x.com\/fantasy_top_\/status\/2057120720799383935\" target=\"_blank\" rel=\"noopener noreferrer\">shutdown services<\/a>and Dmail, a decentralized email service citing high infrastructure costs and weak monetization, also closed during the window. Zapper, a seven-year-old DeFi portfolio tracker, <a href=\"https:\/\/x.com\/sebaudet26\/status\/2074918469376856150\" target=\"_blank\" rel=\"noopener noreferrer\">closes on August 3<\/a> after concluding its economics no longer justify continuing.<\/p>\n<h2>DAO and Analytics Tooling<\/h2>\n<p>Tally, a DAO governance platform, <a href=\"https:\/\/x.com\/tallyxyz\/status\/2033914203837280737\" target=\"_blank\" rel=\"noopener noreferrer\">announced on March 17<\/a> that it would wind down after six years. Chief executive Dennison Bertram said looser SEC enforcement under the current administration made onchain governance optional for many projects, collapsing demand for the tool. Syndicate, backed by A16z, <a href=\"https:\/\/x.com\/syndicateio\/status\/2057291537860706672\" target=\"_blank\" rel=\"noopener noreferrer\">wound down May 21<\/a> after five years amid shrinking interest in new rollup networks.<\/p>\n<p>Parsec, an onchain analytics platform backed in part by Galaxy Digital, <a href=\"https:\/\/x.com\/parsec_finance\/status\/2024519983330468049\" target=\"_blank\" rel=\"noopener noreferrer\">shut down February 19<\/a>citing a difficult competitive market, and pledged to refund subscriptions. Slingshot, a DEX aggregator, began sunsetting in late January and <a href=\"https:\/\/x.com\/SlingshotCrypto\/status\/2022465259811070153\" target=\"_blank\" rel=\"noopener noreferrer\">fully closed by February 28<\/a> over low usage. Entropy, a self-custody startup that had raised $25 million in 2022, closed in January after <a href=\"https:\/\/x.com\/__tux\/status\/2015111615801131117\" target=\"_blank\" rel=\"noopener noreferrer\">repeated pivots failed<\/a> to secure further funding.<\/p>\n<p>Legend, a DeFi wallet and aggregator, <a href=\"https:\/\/x.com\/jaysonhobby\/status\/2054253835003347306\" target=\"_blank\" rel=\"noopener noreferrer\">set a July 12 closure date<\/a> after its co-founder said the product built an audience but never reached sustainable scale. Yupp, an AI model feedback platform, <a href=\"https:\/\/blog.yupp.ai\/winddown\/\" target=\"_blank\" rel=\"noopener noreferrer\">closed March 31<\/a> after less than a year, saying rapid AI model improvements made its crowdsourced service obsolete.<\/p>\n<p>Soundness, a quantum-resistant blockchain project, <a href=\"https:\/\/x.com\/SoundnessLabs\/status\/2067492901886796006\" target=\"_blank\" rel=\"noopener noreferrer\">ceased operations on June 18<\/a>saying the industry simply was not prioritizing quantum-resistant security. Satori, a perpetual DEX, wound down by July 16, <a href=\"https:\/\/x.com\/SatoriFinance\/status\/2066909927973740797\" target=\"_blank\" rel=\"noopener noreferrer\">citing prolonged weak market conditions<\/a>. A handful of projects were also reported to be closing or inactive without a public announcement detailing terms or reasons.<\/p>\n<h2>What It Adds Up To<\/h2>\n<p>The list points to three recurring pressures. Security exploits forced at least half a dozen closures, from Step Finance\u2019s $40 million hack to the Cardano-linked breaches that hit Secondfi and Ctrl Wallet. Regulatory friction played a direct role for AscendEX, which could not <a href=\"https:\/\/news.bitcoin.com\/eu-230-mica-licenses-germany-spain-july-1-deadline\/\">secure MiCA licensing<\/a>and an indirect one for Tally, whose founder tied the shutdown to looser SEC enforcement reducing demand for governance tools. The largest group, though, cited plain economics: teams that built working products, raised meaningful capital in several cases, and still could not attract enough users or revenue to continue.<\/p>\n<\/p><\/div>\n<p>\ud83d\udca1 <strong>Pro Tip:<\/strong> Bookmark our site for daily insights, market predictions, and expert trading strategies.<\/p>\n<p>\ud83d\udd17 <strong>Explore More:<\/strong> Check our sections for in-depth guides, exchange reviews, and blockchain technology deep-dives.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\ud83d\udcf0 Exclusive Crypto News &#038; Analysis: Stay ahead with the latest developments in the cryptocurrency and blockchain space. \ud83d\udcc8 Market Update: Real-time price movements, technical analysis, and trading signals. Key Takeaways Over 60 crypto projects shut down or filed bankruptcy from January to July 2026, led by BitMEX\u2019s Sept. 23 closure. Security exploits drove closures &hellip;<\/p>\n","protected":false},"author":1,"featured_media":3278,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","footnotes":""},"categories":[10],"tags":[1412,916,501,460,499,1377],"class_list":["post-3277","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bankruptcy","tag-blockchain","tag-companies","tag-cryptocurrency","tag-hack","tag-layoffs"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=\/wp\/v2\/posts\/3277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3277"}],"version-history":[{"count":0,"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=\/wp\/v2\/posts\/3277\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=\/wp\/v2\/media\/3278"}],"wp:attachment":[{"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}