Silicon Network shuts down, giving users until December 31 to withdraw nearly $10 million
Silicon Network, an Ethereum layer-2 (a secondary network built on Ethereum to improve speed and cost), has stopped accepting new deposits and begun shutting down. Users have until December 31 to withdraw their funds before the network and its block explorer close permanently.
After this deadline, any remaining assets on the network will become unrecoverable, the project stated in its official notice.
Nearly $10 million remains at risk
Data from L2Beat shows about $9.75 million in assets are still on Silicon. This includes $2.66 million in USDC (a stablecoin pegged to the US dollar), $2.54 million in WBTC (a token representing Bitcoin on Ethereum), $2.08 million in ETH, and $1.85 million in USDT (another stablecoin).
Withdrawal options depend on the type of token. Assets originally bridged from Ethereum can return to the main network during the withdrawal window. Users must start the process, keep enough ETH for transaction fees, and complete it before the cutoff. Tokens issued directly on Silicon, however, rely on remaining liquidity within the network, which may disappear as activity declines.
Network warns of permanent loss
Silicon describes itself as a non-custodial service, meaning users control their own assets. It stated that once the network shuts down, unrecovered funds cannot be retrieved. For tokens issued on Silicon, users must decide how to handle them at their own risk, as recovery will not be possible after termination.
Why the shutdown matters
The closure highlights the challenges facing smaller Ethereum layer-2 networks as the market consolidates around larger players. Silicon was built using Polygon CDK and connected to Agglayer, with close ties to Korbit, a major South Korean crypto exchange. Its Web3 wallet, designed to give exchange users access to decentralized finance, is also being discontinued.
