More than 60 crypto companies, blockchain projects, and DeFi protocols shut down or filed for bankruptcy between January and July 2026, according to statistics from Bitcoin.com News cited by PANews on July 29. The report said the pace of closures accelerated noticeably in the final weeks of July.
It pointed to three main reasons: security breaches, regulatory friction, and unsustainable business models.
Exchanges and bankruptcy filings
Among exchanges, BitMEX said it will stop operating on Sept. 23. AscendEX halted trading on July 1 after failing to obtain an EU Markets in Crypto-Assets, or MiCA, license. BitMart has started a phased shutdown, while Odos is scheduled to close all services on July 30.
On the bankruptcy front, Movement Labs filed for Chapter 11 on July 21. Poolin sought bankruptcy protection this month, and Storj Labs also filed for Chapter 11.
Layer 1, Layer 2, and DeFi closures
In the Layer 1 and Layer 2 segment, Powerloom, Botanix, Hyli, Sophon, Swellchain, Milkyway, and Mint Blockchain were listed among the projects that shut down.
For DeFi, the report named Radiant Capital, Ionic Protocol, Carrot Finance, Step Finance, Polynomial, Seamless Protocol, Everclear, and Angle Protocol as protocols that closed because of security issues or unsustainable economic models.
Wallets, NFT gaming, and DAO tools were also hit
Wallet-related shutdowns included Secondfi, Ctrl Wallet, Xenea, Leap Wallet, and the Magic Eden wallet, which the report said closed due to security incidents or strategic adjustments.
In NFT and gaming, Foundation, Pudgy Party, Fishing Frenzy, and Gensokishi Online were also listed as projects that shut down.
For DAO tooling, Tally, Syndicate, Parsec, and Slingshot closed as demand weakened or competition intensified, according to the report.