Case summary
What happened
Pillow offered a custodial app through which users deposited Bitcoin, Ether and stablecoins to earn advertised yield. On 23 June 2023, Pillow informed users that it would discontinue its services because regulatory uncertainty made continued operation difficult. Interest accrual stopped, bank withdrawals remained available until 7 July, and crypto withdrawals remained available until the scheduled closure on 31 July 2023. The notice said deposits and accrued interest were available for withdrawal, but reviewed sources do not establish that every user completed withdrawal.
Customer result
Customer outcome
Not applicable
Stage 2 review resolves the platform-wide outcome semantics as `not_applicable`, not `full_repayment`. Pillow announced a voluntary wind-down rather than an insolvency or creditor-recovery process and told users that deposits and accrued interest were available for withdrawal, with bank withdrawals open through 7 July 2023 and crypto withdrawals through the 31 July 2023 closure. A platform-wide recovery percentage is therefore not the appropriate model. CYA does not claim that every customer completed withdrawal, that every balance was recovered successfully, or that withdrawal availability proves broader solvency beyond the announced wind-down process.
- Estimated recovery
- Not applicable
- Repayment started
- —
- Repayment completed
- —
- Confidence
- High
Asset treatment
Terms risk
Unclear
Unclear is retained because a customer-facing product guide establishes custody and yield use but not a complete legal asset-ownership framework.
- Affected product
- Pillow crypto savings Cases and custodial wallet balances
- Confidence
- Medium
Pillow operated custodial deposit addresses and promised yield, but the reviewed public sources do not establish one complete contractual ownership or insolvency-priority treatment for all supported assets and products.
Known unknowns
Uncertainty
The 2021 launch date is year-level. Regulatory uncertainty was the stated reason for the voluntary closure, but no specific enforcement order is treated as the direct cause. The available-withdrawal statement does not establish universal withdrawal completion or a final customer recovery rate.
Chronology
Historical record
Pillow begins operating
Pillow began offering a custodial crypto savings and yield application.
Launch date is approximate and recorded at year-level.
Pillow announces orderly shutdown
Pillow told users that it would discontinue services because regulatory uncertainty made continued operation difficult and instructed users to withdraw their funds.
Interest accrual stopped immediately; bank and crypto withdrawal windows remained open for limited periods.
Pillow services end
Pillow's announced crypto-withdrawal and service-closure deadline arrived on 31 July 2023.
The deadline is supported by contemporaneous reproductions of Pillow's customer notice.
Source record
Evidence dossier
Filter by claim, reliability, source type, and whether evidence is linked to a specific event.
end date
1 sourcesPillow shutdown timetable and July 31 termination
Moneycontrol · 2023-06-23
Supports the scheduled 31 July 2023 crypto-withdrawal and service-termination deadline.
Entity
1 sourcesGuide to deposit funds to your Pillow wallet
Pillow: Dollar Savings App · 2021-12-09
First-party product guide documents Pillow's custodial deposit addresses, supported assets and interest-bearing app model.
Event
2 sourcesCrypto investment startup Pillow to discontinue all services
TechCrunch · 2023-06-23
Reproduces the shutdown timetable and Pillow's statement that deposits and accrued interest were available for withdrawal.
Accel-backed crypto startup Pillow to shut down operations on July 31
Moneycontrol · 2023-06-23
Reports the end of interest accrual, withdrawal deadlines and stated regulatory uncertainty.
failure reason
1 sourcesCrypto startup Pillow calls it quits on regulatory woes
The Economic Times · 2023-06-23
Independent report on Pillow's voluntary closure under regulatory uncertainty.
launch date
1 sourcesCrypto startup Pillow calls it quits on regulatory woes
The Economic Times · 2023-06-23
Reports Pillow's 2021 founding and later shutdown. Launch date is retained at year-level.
url history
1 sourcesPillow website archive captures
Internet Archive
Preserves the original Pillow domain and historical product surface.
No evidence records match the current filters.
Comparative records