With the backing of notable figures in the cryptocurrency community, including Vitalik Buterin, co-founder of Ethereum, the startup successfully raised $6 million in a seed fundraising round.
Customers will have access to the Nocturne front end until June 30th for withdrawals, as announced by Nocturne Labs, the Ethereum-native privacy protocol.
The reason for the shutdown was not disclosed by the firm, which originally aimed at private Ethereum accounts and transactions. In October 2023, the startup secured $6 million in a seed fundraising round with involvement from Buterin, led by Polychain Capital and Bain Capital Crypto.
Despite the decision to close down operations, customers can still use the Nocturne front end until June 30th for withdrawals.
According to DefiLlama statistics, the total value locked (TVL) for Nocturne has decreased from over $455,000 on January 22 to over $129,000 at present, following the announcement of Nocturne v1’s termination.
Since the US government banned the crypto mixing protocol Tornado Cash in August 2022, privacy-focused initiatives have faced increased scrutiny. However, Vitalik Buterin has been a vocal advocate for transactions prioritizing user privacy, sparking a shift in the crypto community’s discussions on privacy within the Ethereum blockchain.
Drawing parallels between the Transmission Control Protocol (TCP) and his stance on default transaction privacy, Buterin suggests delegating encryption responsibilities to higher levels, similar to how TCP handles encryption. This approach aims to maintain a strong foundation layer while allowing for privacy enhancements at higher levels.
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