Coinbase-Backed Harpie Shuts Its Doors, Here’s What Happened

• Harpie shuts down operations despite strong backing from Coinbase Ventures and Dragonfly Capital.
• Harpie will provide a tool to help users safely transfer their crypto assets.

Harpie, one of the Web3 security projects that was once the hope of crypto users for asset protection, suddenly announced the complete closure of its services.

In fact, Harpie’s name had surfaced after receiving financial support from two major players such as Coinbase Ventures and Dragonfly Capital. Unfortunately, even though the technology and vision offered were quite advanced, Harpie was unable to survive in the long term.

Source: harpie.io

Its flagship service, an on-chain firewall, is designed to detect and block suspicious interactions directly from the user’s wallet. This feature is quite helpful amid the rise of phishing and smart contract exploitation.

But apparently, innovation alone is not enough. When it comes to sustainability, Harpie has to step down. They admit that their current business model is unable to support long-term operations.

Why Did Harpie Collapse?

Many may wonder, how could a project that has raised up to $4.5 million in funding since 2021 just collapse? The problem is not about technology. Instead, this is more of a classic startup challenge: how to make money from the solutions offered. Building high-level security for the crypto industry is a noble endeavor, but without a steady cash flow, it’s tough.

Furthermore, Harpie isn’t the only Web3 security startup grappling with the same issue. Many other security projects are also struggling to balance innovation with profitability. In a world as fast-paced as crypto, building technology isn’t enough—there has to be a sound business strategy.

Users Can Still Move Funds, Rewards Will Be Honored

Fortunately, Harpie isn’t letting go of its responsibilities. In the coming days, it will be rolling out a tool on its website that will allow users to securely transfer their assets. Meanwhile, its existing referral and rewards programs will also be honored. At least, Harpie isn’t running away from its responsibilities.

Regulatory Wins Fuel Coinbase’s Global Comeback

While one of its investors has suffered a setback, Coinbase has taken a few steps forward. According to the CNF, Coinbase announced plans to resume operations in India after getting the green light from the country’s Financial Intelligence Unit (FIU).

The decision comes as a surprise considering India’s long-standing strictness on crypto. However, there is reportedly political pressure as well, especially since President Donald Trump’s support for digital assets is starting to influence the direction of global policy.

On the other hand, Coinbase is experiencing positive changes domestically. On March 27, 2025, the state of South Carolina decided to drop its lawsuit against Coinbase regarding their staking services.

The lawsuit had accused Coinbase of selling securities without permission. After Vermont first dropped the lawsuit, South Carolina’s move further strengthened Coinbase’s position in the eyes of consumers. Paul Grewal, Coinbase’s Chief Legal Officer, even hopes that other states will follow suit.

Opens MPC Code, Embracing Shared Crypto Security

In addition, on March 28, 2025, Coinbase Institutional formally made their Multi-Party Computation (MPC) cryptography code available to the public. MPC is widely regarded as one of the most secure crypto technologies available today.

By making this code available, the entire community can utilize it and even improve it. This measure also conveys a clear message: security should be shared, not monopolized.