Hats Finance announces the cessation of operations, with both the front-end and back-end expected to stop services on December 31.

Foresight News reports that Hats Finance, the active bounty protocol for white hat hackers and auditors, has officially announced the final cessation of its custodial operations. All custodial front-end and back-end services are expected to go offline by December 31, 2025. After careful consideration, the team has decided to discontinue maintaining a centralized user interface and server operations due to sustainability issues. Throughout this process, the long-term demand for HATS Token has not met expectations, the smart contracts security budget has not adapted to the development of Decentralized Finance (DeFi), and the rapid advancements in AI security tools and the maturation of secure reusable smart contract building blocks have reduced the ongoing demand for protocols like Hats. The front-end and back-end (user interface and server) managed by Hats Finance are expected to cease operations on December 31, 2025. Most functionalities relying on this custodial tech stack will be gradually phased out. The Hats protocol is still deployed on-chain and managed by DAO. The core contracts will continue to operate according to their code. A front-end version hosted on IPFS is currently available, and it can be accessed via public gateways as long as this version remains operational (e.g., through funding lock providers or community nodes). As payments to current funding lock providers (e.g., Pinata) will cease, the official cannot guarantee its continued availability or performance. Users with deposits who wish to withdraw using the custodial user interface are advised to initiate withdrawal requests before December 17, 2025. If this window is missed, requests can be re-initiated or users can interact directly with the contracts. Although the core contracts will continue to run on-chain and be managed by DAO, users need to pay attention to the relevant logic and network conditions.