Crypto start-up Pillow to shut operations due to regulatory uncertainty

The cryptocurrency startup pad, backed by Accel and Elevation Capital, will close its services from July 31. The company cited “regulatory uncertainty” as the reason.

In an official message to its users, the company wrote: “We regret to inform you that the Pillow team has made the decision not to offer our existing services through the Pillow app due to regulatory uncertainty and will be closing operations on July 31.”

Users were requested to redeem investments and withdraw funds instantly through available withdrawal modes. According to reports, the platform will shut down its services in India and Nigeria.

The startup had, in October 2022, raised $18 million in Series A funding jointly led by Accel, Quona Capital, Elevation Capital, and Jump Capital. Elevation Capital was also the first core investor in Pillow, leading the round in 2021.

The platform said that users’ funds will remain safe, fully accessible, and open for crypto withdrawals until July 31. In addition, bank withdrawals will be valid until July 7, 2023. Users will also receive a consolidated statement of all transactions on the Pillow app.

Pillow was founded in 2021 by Arindam Roy, Rajath KM and Kartik Mishra. The platform said in October 2022 that it had 75,000 users in more than 60 countries. Within the Pillow app, users can invest and save in USD-backed stablecoins, as well as several premium cryptocurrencies including Bitcoin, Ethereum, and others.