Paris-based startup Kulipa has abruptly ceased operations over debt repayment issues, according to The Defiant, triggering a halt in card programs used by roughly 20 crypto wallet and fintech companies. The disruption hit self-custody wallet Ready, formerly Argent, and Solana wallet Solflare, with card services suspended immediately for users. The report said user assets were not affected because both wallets use a self-custody model in which funds are debited from users’ wallets only at the time of spending. The shutdown came only about four months after Kulipa raised $6.2 million in a seed round co-led by Flourish Ventures and 1kx in April this year. The episode highlights how operational failures at infrastructure providers can interrupt consumer-facing crypto payment products even when underlying user funds remain untouched.
Paris-based startup Kulipa has abruptly stopped operating because of debt repayment issues, according to The Defiant, cutting off card programs tied to about 20 crypto wallet and fintech companies.
The shutdown affected self-custody wallet Ready, formerly Argent, and Solana wallet Solflare. Card services for users were suspended immediately.
Wallet funds were not impacted
Ready and Solflare both use a self-custody structure, meaning funds are deducted from users’ wallets only when a purchase is made. As a result, user assets were not affected by Kulipa’s collapse.
Shutdown followed a recent seed round
Kulipa had raised $6.2 million in a seed round in April this year, with Flourish Ventures and 1kx serving as co-lead investors. Its shutdown came only about four months after that financing.
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