Phoenix Wallet Stops U.S. services because of New Rules

ACINQ’s announcement about Phoenix Wallet

ACINQ, the Bitcoin technology firm behind Phoenix Wallet, has announced that it will discontinue its services for U.S. customers due to regulatory challenges. Effective May 3, the Phoenix Wallet app will be withdrawn from all U.S. app stores, compelling users to find alternative solutions for their cryptocurrency needs.

Recent announcements from US authorities cast a doubt on whether self-custodial wallet providers, Lightning service providers, or even Lightning nodes could be considered Money Services Businesses and be regulated as such.

— ACINQ (@acinq_co) April 26, 2024

Phoenix Wallet’s post

In a statement released on X, formerly known as Twitter, Phoenix Wallet advised its U.S. users to transfer their funds out of their wallets by following specific steps provided by the company. The wallet operator also cautioned against forcibly closing the wallet application, warning that such actions could lead to substantial on-chain fees.

On May 3rd, 2024, @PhoenixWallet will be removed from US app stores.

Users from the US should empty their wallet:
– Settings > Close channels (Android)
– Settings > Drain wallet (iOS)

We highly recommend *not force-closing* channels, as on-chain fees could be significant.

— Phoenix Wallet (@PhoenixWallet) April 26, 2024

If you are currently using Phoenix Wallet in the U.S., it is important to take action. Following the withdrawal announcement, you are advised to transfer your funds out of Phoenix Wallet before services are discontinued on May 3rd. Please follow the instructions provided by Phonix Wallet.

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