Bitcoin

Read

Phoenix

<p class="is-style-lead">Phoenix Wallet, a Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="">BTC</a>) wallet designed for Lightning payments, has announced that it will stop serving U.S. residents on May 3.&nbsp;</p> 
<p>ACINQ, the company behind Phoenix Wallet, plans to remove the app from U.S. app stores, meaning users in the U.S. will no longer be able to access it from the said date.&nbsp;</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">On May 3rd, 2024, <a href="https://twitter.com/PhoenixWallet?ref_src=twsrc%5Etfw" target="_blank" rel="">@PhoenixWallet</a> will be removed from US app stores.<br><br>Users from the US should empty their wallet:<br>– Settings &gt; Close channels (Android)<br>– Settings &gt; Drain wallet (iOS)<br><br>We highly recommend *not force-closing* channels, as on-chain fees could be significant.</p>— Phoenix Wallet (@PhoenixWallet) <a href="https://twitter.com/PhoenixWallet/status/1783878658014249027?ref_src=twsrc%5Etfw" target="_blank" rel="">April 26, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>The company has advised its U.S. customers to withdraw their funds without delay. However, it cautioned against force-closing the wallets, as that could lead to higher on-chain fees.&nbsp;</p> 
<p>Instead, the company urged its American iOS users to go to the wallet’s settings page and hit “drain wallet,” Android users are advised to also go to the settings section and hit the “close channels” command to safely empty their wallets.</p> 
<p>The official reason for pulling the wallet from U.S. app stores hasn’t been given. However, ACINQ hinted in a tweet that recent U.S. government <a href="https://www.justice.gov/usao-sdny/pr/founders-and-ceo-cryptocurrency-mixing-service-arrested-and-charged-money-laundering" target="_blank" rel="">statements</a> raise doubts about whether self-custodial wallets, Lightning service providers, or even Lightning nodes might be considered Money Services Businesses and face regulation.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">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.</p>— ACINQ (@acinq_co) <a href="https://twitter.com/acinq_co/status/1783878732865740940?ref_src=twsrc%5Etfw" target="_blank" rel="">April 26, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>The company’s decision comes on the heels of legal action against the creators of Samourai, a Bitcoin mixing wallet.&nbsp;</p> 
<p> Read more: <a href="https://crypto.news/us-senators-cracking-down-on-crypto-use-in-child-abuse-trade/" rel=""> US senators cracking down on crypto use in child abuse trade </a> </p> 
<p>On April 24, federal prosecutors in the Southern District of New York <a href="https://crypto.news/doj-arrests-samourai-wallet-founder-over-2b-illegal-money-flow/" target="_blank" rel="">announced</a> that they had indicted Samourai Wallet founders Keonne Rodriguez and William Lonergan Hill.</p> 
<p>Rodriguez and Hill accusing them of aiding illegal transactions through Samourai. Per the indictment, Rodriguez faces up to 20 years in prison, while Hill could face up to five years if convicted.</p> 
<p>The U.S. Department of Justice alleges that Samourai’s creators allowed over $2 billion in unlawful transactions through the platform, collecting more than $4.5 million in fees since 2015. It also claims that Samourai was marketed as a tool for censorship resistance and facilitating illicit activities.</p> 
<p>The arrest of Rodriguez was accompanied by a warning from the FBI to users about ‘operations’ on unregistered crypto firms believed to be money services businesses. This crackdown follows a pattern of U.S. authorities targeting wallets and mixers involved in what they deem to be questionable activities.</p> 
<p>The indictments have provoked an outcry from the crypto community, with CryptoQuant CEO Ki Young Ju coming to the <a href="https://crypto.news/cryptoquant-ceo-defends-samourai-wallet-founders/" target="_blank" rel="">defense</a> of Rodriguez and Hill, arguing that privacy protection is a fundamental aspect of Bitcoin.&nbsp;</p> 
<p>Ju compared the situation to punishing the inventor of a knife instead of the one who misuses it, emphasizing that the intent behind using a tool determines its legality.</p> 
<p> Read more: <a href="https://crypto.news/british-law-agency-gains-enhanced-crypto-seizure-powers/" rel=""> British law agency gains enhanced crypto seizure powers </a> </p>

Phoenix Wallet halts services for US users amid regulatory uncertainty

crypto.news

Other articles published on Apr 27, 2024

Wall Street Goes Crypto! BNY Mellon Invests in Bitcoin ETFs

Insights on Bitcoin’s Price Trends and Critical Support Levels

Phoenix Wallet Exits U.S Market Amid Increasing Regulatory Scrutiny

Solana’s (SOL) Price Dips Amidst Exchange Transfer: What’s Next?

The Big Breakthrough: BEFE Coin’s Potential To Reach $0.01

Ethereum Eyes $3,400: Breakthrough Could Propel Towards $3,500+

Join our free newsletter for daily crypto updates!