Crypto research firm Hazeflow to shut down as founder steps away from industry

Hazeflow founder Pavel Paramonov has announced the closure of his crypto research firm, saying he will step away from the crypto industry for at least a month after deciding to wind down the business.

According to a statement published by Paramonov on X, Hazeflow will cease operations after what he described as a decision that was not made voluntarily, arguing that founders do not normally shut down businesses that continue to generate revenue.

Without disclosing the specific reasons behind the closure, Paramonov said decisions of this kind are usually forced by circumstances rather than choice. He did not elaborate on the factors that led Hazeflow to shut down or whether financial, operational, or market-related issues played a role.

Although the company is closing, Paramonov said he views the experience positively and expressed gratitude to the people who helped build the business. He thanked Hazeflow’s clients, partners, and employees, calling the firm’s run a good one.

Before stepping away, Paramonov also used the announcement to help members of his team find new opportunities. He said several researchers and designers who worked at Hazeflow are looking for new roles and invited organizations seeking long-term talent to contact him directly.

Paramonov said he plans to remain away from crypto for at least a month before deciding his next move. He added that he is currently “a little bit disappointed” with the crypto industry but did not explain what had contributed to that view.

The announcement did not include a timeline for winding down services or provide further details about the circumstances that led to the firm’s closure.

Crypto industry continues to see project closures

Hazeflow’s closure adds to a series of shutdowns across different parts of the crypto industry this year, although the reasons behind each case have varied.

Earlier this month, cryptocurrency exchange AscendEX halted operations after citing regulatory requirements under the European Union’s Markets in Crypto-Assets framework and ongoing financial difficulties. The exchange said it lacked the authorization required to continue operating under MiCA and warned that some customers might not be able to recover all of their crypto balances. It also attributed its financial position to a failed strategic transaction and weak market conditions.

Days later, Robinhood Chain-based memecoin launchpad Vlad.fun suspended its platform after reporting what it described as a serious internal integrity issue involving members of its own team. The project said it took the platform offline while conducting an internal investigation with legal counsel but did not disclose the nature of the alleged misconduct or whether user funds had been affected.

Earlier in June, Cardano analytics platform TapTools also announced plans to wind down after losing its fifth senior executive of the year. According to the company, the departure of key leadership and technical staff left it unable to maintain the platform responsibly, while infrastructure costs added further financial pressure.

Several closures during the first half of the year were linked directly to the fallout from the Drift Protocol exploit.

In May, Solana-based DeFi yield protocol Carrot announced a permanent shutdown after saying losses tied to the Drift exploit made continued operations impossible. The protocol instructed users to withdraw their remaining assets before it began deleveraging its system and said it would continue assisting recovery efforts related to Drift.

A month later, crypto payments platform Pyra also confirmed it would wind down after concluding it could not find a sustainable path forward following the same exploit. The company stopped accepting new users, canceled its payment cards, and gave existing customers until Sept. 15 to withdraw their funds while preparing a portal to manage remaining claims and any future recovery tokens associated with Drift.