The cryptocurrency startup, in which Vitalik Buterin, the founder of Ethereum, invested, made a decision that disappointed its users.
According to the statement made by the Nocturne team, it was decided to completely close the company.
He received investment from Buterin
Founded in the USA, Nocturne Labs aimed to enable users in the Ethereum ecosystem to trade anonymously. Users had the opportunity to deposit and withdraw money from their Nocturne accounts.
Nocturne Labs received a $6 million seed investment in October 2023 from Bain Capital Crypto, Polychain Capital, Vitalik Buterin and several other investors.
The Nocturne team said, "We decided to close the company after closing the privacy protocol we established at the beginning of this year."
The interface of the Nocturne protocol will remain open until the end of this month for users to withdraw funds. Users will then be able to withdraw funds on their own via a Github repo.
Regulatory pressure
Many governments take a tough stance against privacy-focused cryptocurrency platforms. OFAC, affiliated with the US Department of Treasury, had placed Tornado Cash, one of the largest mixers, on its sanctions list.
Luke Tchang, CEO of Nocturne Labs, stated that they will "approach the legal compliance issue carefully." No details were given about why the Nocturne protocol was closed.
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