Dango Shuts Down Layer 1 Blockchain and DEX After Mounting Financial, Legal Challenges

Dango, the Layer 1 blockchain and decentralized exchange (DEX), is shutting down its operations just months after launching perpetual futures trading in April, marking another crypto project closure during a difficult year for the industry.

The platform has announced two key deadlines for users to withdraw funds and close positions. Trading on Dango’s decentralized exchange will end on Wednesday, July 29, at 12:00 p.m. UTC. Any open perpetual futures positions remaining after the deadline will be settled using the oracle price. At the same time, assets locked in liquidity provider vaults will be released, with all balances returned to users’ spot accounts in USDC.

Dango’s Layer 1 blockchain will remain operational until Wednesday, August 13, at 12:00 p.m. UTC. After that date, any unclaimed deposits will automatically be sent back to the original Ethereum (ETH) wallet addresses used for deposits.

The team reassured users that customer funds remain secure and said withdrawal limits will soon be removed. It also advised traders to close positions and withdraw assets as soon as possible, warning that liquidity could decline significantly as the shutdown approaches, potentially leading to higher slippage.

Dango founder Larry said the decision resulted from several challenges rather than a single issue. According to him, the project struggled with dwindling cash reserves, legal and compliance hurdles that delayed product development, slowing user growth, the loss of key team members, and unfavorable market conditions that made recovery increasingly difficult.

Dango’s closure reflects a broader trend across the cryptocurrency industry in 2026. According to CryptoRank, at least 17 major crypto companies and projects had shut down or filed for bankruptcy by July 23. The list includes well-known names such as Loopring DEX, Movement Labs, and Bitcoin Depot, underscoring the ongoing financial and operational pressures facing blockchain startups despite continued innovation across the digital asset sector.