Coinbase-backed web3 security shop Harpie announces immediate shutdown due to financial difficulties

Harpie, a web3 security provider backed by Coinbase Ventures, has shut down its on-chain firewall business effective immediately due to financial struggles, according to a company announcement .

Back in 2022, Harpie closed a $4.5 million seed round led by Dragonfly Capital, with participation from Coinbase Ventures, the investment arm of U.S. crypto exchange Coinbase, and NFT marketplace OpenSea. The firm used the funding to build its blockchain protection service for Ethereum wallets, hoping to safeguard crypto users from rampant hacks. “We attempted to create a theft-free crypto ecosystem, but unfortunately could not create a sustainable business model around it,” Harpie’s team said about the business closure.

Hackers stole over $1.9 billion from blockchain entities in July 2022, according to Chainalysis, less than two months before Harpie’s raise in September of that same year. Three years later, on-chain security remains a major pain point for crypto users and service providers. North Korean-funded criminal organization Laraus exploited Bybit’s Safe cold wallet to steal over $1.4 billion in ether late last month. The incident is regarded as " the largest crypto theft of all time " and the biggest financial exploit recorded to date.

“We hope that we inspired new companies to take the torch of solving this problem,” Harpie wrote.