VC-Backed Crypto Security Startup Harpie Closes Shop: What Happened?

• Harpie ceases operations, citing unsustainable business model despite strong security tools.
• Harpie plans to launch a tool for users to transfer assets from the platform.
• All giveaways from Harpie Season 1 and referral programs will still be honored.

Harpie, an on-chain firewall project designed to protect crypto users from various forms of theft, announced it has ceased operations and will no longer provide its security services. The team, whose mission involved preventing threats like phishing scams and smart contract exploits, acknowledged challenges in finding a sustainable business model to support its long-term goals. 

Why Did Harpie Shut Down Despite Funding?

According to Harpie’s official announcement, while the project successfully developed valuable security tools, these efforts ultimately failed to achieve the financial viability necessary for continued operation. 

This outcome occurred despite Harpie securing $4.5 million in a September 2022 seed funding round led by prominent venture firm Dragonfly Capital. The project couldn’t generate enough sustained revenue or user growth to maintain its services.

Related: Stolen Funds in Crypto Theft Plummets 54.3% to $1.7B in 2023

What Happens to User Assets and Rewards?

For users with assets currently managed or vaulted via the Harpie platform, the company stated it will launch a tool soon that enables transfers to external wallets. Anyone encountering failed transactions using Harpie’s RPC endpoint now is advised to disconnect from it through their wallet’s network settings. 

Harpie assured users it would provide the necessary tools and instructions to move vaulted assets in the coming days.

The company confirmed that commitments related to Harpie’s Season 1 and referral program giveaways will still be honored. Users are encouraged to monitor the official Harpie Discord channel for updates and specific instructions regarding asset withdrawal and reward distribution.

Harpie Hopes to Inspire Future Security Efforts

Despite closing down, the Harpie team expressed gratitude to its user base. They also hoped the project’s work might inspire other companies to continue developing robust solutions for a safer crypto environment. 

While Harpie’s specific business model didn’t succeed, its efforts against digital wallet theft and fraud could potentially inform future security innovations within the crypto space.