$6.2M Funding Not Enough: Kulipa Stablecoin Card Issuer Abruptly Shuts Down

Kulipa, a Paris-based stablecoin card issuer, has shut down just four months after closing a $6.2 million seed round co-led by Flourish Ventures and 1kx.

The company's sudden collapse has left around twenty wallets and crypto firms without a physical spending option, including Solflare and Ready.

Kulipa operated on a self-custody model, which meant that user funds were never held in the company's accounts. However, this also means that when the issuer pulls the plug, the service stops working immediately.

The shutdown has raised questions about Kulipa's solvency issues and whether they were carrying heavy debt or facing regulatory action.