Harpie, a service designed to prevent wallet theft and hacks in the cryptocurrency space, has officially shut down after facing challenges in building a sustainable business model. The company, known for its on-chain firewall solutions, announced the closure on March 27, 2025, through a post on social media.

Why Harpie Shut Down

Harpie, which was backed by notable entities such as Coinbase Ventures and OpenSea, aimed to create a “theft-free crypto ecosystem” by protecting users from hacks, scams, and theft. Despite its ambitious goals, the startup struggled to generate a feasible business model to support its operations long-term. In its announcement, Harpie expressed hope that its efforts would inspire other companies to tackle the issue of crypto security.

“We’ve made the tough decision to shut down Harpie. Services will be shut down immediately.”

The company’s services were terminated immediately, and users were advised to disconnect their wallets from Harpie’s RPC using their wallet’s network settings. Harpie assured users that a utility to move vaulted assets would be made available on its website in the days following the shutdown.

Steps for Users to Secure Their Wallets

If you were a Harpie user, here are the recommended steps to ensure your wallet security:

  • Disconnect from Harpie RPC: Use your wallet’s network switcher to remove any connection to Harpie’s services.
  • Monitor Transactions: If your transactions are failing, double-check your network settings and ensure your wallet is correctly configured.
  • Vaulted Assets: Keep an eye on Harpie’s website for updates on the utility to transfer vaulted assets.

Honoring Rewards and Pending Giveaways

Despite the shutdown, Harpie assured users that all pending giveaways and rewards tied to its referral program would still be honored. This gesture highlights the company’s commitment to fulfilling its obligations to users even as it ceases operations.

Harpie’s Journey and Business Model

Launched nearly three years ago, Harpie made headlines when it raised $4.5 million in funding led by Dragonfly Capital, with additional support from Coinbase Ventures and OpenSea. Initially, Harpie charged a 7% recovery fee for any stolen assets retrieved through its service. However, the company later shifted to a fixed fee of 0.01 ETH per asset, regardless of its value. This change in pricing structure was part of its efforts to refine its business model, but it ultimately did not provide the sustainability needed for long-term success.

Impact on the Crypto Security Landscape

Harpie’s closure serves as a reminder of the challenges faced by startups in the cryptocurrency security space. While the company is no longer operational, its efforts have shed light on the importance of protecting users in the rapidly evolving crypto ecosystem. As security remains a major concern, other companies may adopt lessons learned from Harpie’s journey to develop better theft-prevention solutions.

The cryptocurrency industry continues to grow, attracting both seasoned investors and newcomers. For those looking to safeguard their digital assets, it’s crucial to stay informed about wallet security practices and emerging technologies aimed at reducing vulnerabilities.

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