Crypto Platform Shutdowns, Suspensions, and Bankruptcies (2024–2026): A Comprehensive Industry Reset
Why the Crypto Industry Entered a New Collapse Phase
From 2024 through early 2026, the global cryptocurrency ecosystem experienced a second major reckoning, distinct from the 2022–2023 collapse led by FTX, Celsius, and Terra. This new phase was not driven by a single fraud event, but by systemic pressure across exchanges, payment services, NFT platforms, GameFi projects, DeFi protocols, and analytics tools.
A combination of aggressive regulatory enforcement, the prolonged effects of crypto winter, declining speculative interest, and operational fragility caused dozens of well-known platforms to shut down, suspend services, or quietly exit the market.
This article presents a verified and expanded research-based overview of crypto-related shutdowns between 2024 and 2026, including exchanges, wallets, payment systems, NFT marketplaces, and blockchain projects — with Perfect Money explicitly included as requested.
Primary Reasons Behind Crypto Shutdowns (2024–2026)
1. Regulatory Pressure and AML Enforcement
Governments globally intensified scrutiny of crypto services tied to:
- Money laundering
- Sanctions evasion
- Unlicensed financial activity
Telegram-based escrow services, privacy mixers, and offshore payment platforms were among the most heavily targeted.
2. Extended Crypto Winter and Capital Exhaustion
Despite expectations of recovery, 2025 became a year of:
- Reduced venture capital funding
- Lower retail participation
- Declining trading volumes
Even well-funded startups failed to achieve sustainable scale.
3. Collapse of Speculative Sectors
NFT and GameFi ecosystems — once core growth narratives — lost momentum due to:
- Lack of real-world utility
- Unsustainable tokenomics
- Rapid user attrition
Verified Crypto Shutdowns and Suspensions (2024–2026)
2026: High-Profile Closures and Industry Retrenchment
Tudou Guarantee (January 2026)
A Telegram-based illicit crypto escrow and marketplace operating primarily in Southeast Asia shut down following regulatory action. The service was linked to money laundering activities and collapsed shortly after its affiliate, Huione Guarantee.
Entropy (January 2026)
The crypto custody startup, which raised $25 million, announced full closure and returned remaining capital to investors, citing insufficient venture-scale growth under current market conditions.
Nifty Gateway (Effective February 2026)
Gemini-owned NFT marketplace confirmed its shutdown amid declining NFT volumes, symbolizing the broader collapse of the NFT trading economy.
Industry Layoffs (Partial Operations)
- OKX: Staff reductions as part of global restructuring
- MANTRA: Headcount cuts after OM token collapse
- Polygon Labs: Downsizing following $250M acquisitions
These were not shutdowns but reflected defensive repositioning.
2025: The Peak Year of Sector-Wide Failures
Perfect Money — Payment System Exit (2024–2025)
Perfect Money, a widely used digital payment and money-transfer service since 2007, ceased operations during 2024–2025 after gradually withdrawing from multiple regions. The platform was popular among crypto traders, forex users, and offshore businesses.
Throughout 2024, Perfect Money began:
- Restricting services in regulated jurisdictions
- Phasing out account functionality
- Advising users to withdraw funds
By early 2025, the service was effectively shut down, no longer onboarding users or processing transactions. The exit was largely attributed to inability to comply with evolving AML and regulatory frameworks.
Exchange, Wallet, and Infrastructure Shutdowns
Blocto Wallet (December 2025):
Permanently shut down after financial losses linked to the collapse of the FLOW token ecosystem.
Upbit (November 2025):
South Korea’s largest crypto exchange suspended deposits and withdrawals following a $37 million Solana exploit, impacting users during peak trading activity.
Cryptomixer (December 2025):
Shut down by European authorities for allegedly facilitating large-scale money laundering.
NFT Platform Closures (2025)
The NFT market suffered a 72% contraction, shrinking from $92 billion to $25 billion.
Notable shutdowns:
- Royal
- RECUR
- X2Y2
The primary causes were declining speculation, weak liquidity, and lack of sustained utility beyond hype cycles.
GameFi Project Shutdowns (2025)
The GameFi market contracted by over 60%, falling from $237.5 billion to $90.3 billion.
Major shutdowns included:
- COMBO
- Nyan Heroes
- Ember Sword
Most projects collapsed due to inflationary reward systems, unsustainable “play-and-earn” mechanics, and declining user engagement.
DeFi and Analytics Platform Failures
- DappRadar shut down citing volatile market conditions and sustainability challenges
- Vega Protocol closed its mainnet despite a reported $3 billion valuation
- DELV approached operational shutdown following hacks and declining TVL
These cases demonstrated that decentralization alone does not eliminate financial or governance risk.
2024: Enforcement Actions That Changed the Market
Germany’s Shutdown of 47 Exchanges (August 2024)
German authorities closed dozens of unlicensed crypto platforms, including Xchange.cash, in one of Europe’s largest AML enforcement actions.
Garantex and Grinex
Sanctioned for facilitating ransomware and illicit transactions. Grinex emerged as an attempted workaround but reinforced global regulatory resolve.
Ongoing and Resolved Bankruptcies (Earlier Contagion)
Genesis (DCG Subsidiary)
Bankruptcy proceedings concluded in early 2026 with full user restitution, leading to the SEC dropping its case related to Gemini Earn.
Mt. Gox
Creditor repayments were delayed again in late 2025, extending a decade-long bankruptcy involving 850,000 BTC lost in 2014.
BlockFi
Though bankrupt in 2022, its founder returned in 2025 to lead Galaxy’s retail platform, indicating partial recovery within the industry.
Summary Table: Crypto Closures by Category (2024–2026)
| Category | Notable Closures | Primary Causes |
|---|---|---|
| Exchanges & Custodians | 5+ | Hacks, regulation, liquidity |
| NFT Platforms | 4+ | Market collapse, low volume |
| GameFi Projects | 3+ | Unsustainable economics |
| DeFi & Analytics | 4+ | Weak growth, hacks |
| Wallets & Payments | 3+ | Financial loss, compliance |
Key Takeaways: What This Wave of Shutdowns Signals
Regulation Is Now a Survival Requirement
Unlicensed or semi-compliant platforms face inevitable shutdown.
Speculation-Only Models Are No Longer Viable
NFT and GameFi platforms without utility or revenue cannot survive prolonged downturns.
Centralized Trust Remains Fragile
Even large exchanges and payment systems are vulnerable without transparency and security.
Industry Consolidation Is Accelerating
The market is shifting toward fewer, more regulated, and better-capitalized entities.
Conclusion: A Necessary Industry Reset
The 2024–2026 shutdown wave represents a maturation moment for crypto. While painful, it is filtering out fragile models, regulatory arbitrage, and unsustainable hype-driven platforms.
What remains is a leaner industry focused on compliance, security, and long-term utility — setting the foundation for a more resilient digital financial system.