Phoenix Wallet Exits US Market Fearing Regulation

As a researcher with extensive experience in the field of cryptocurrency and blockchain technology, I cannot help but express my deep concern over the recent developments regarding the removal of the popular Phoenix wallet from US app stores on May 3rd, 2024.


Starting from May 3rd, 2024, I’ve noticed that the Phoenix crypto wallet, a favorite among users due to its integration with Bitcoin Lightning Network, will no longer be available for download in US app stores. Acinq, the French company responsible for this wallet, has communicated this decision, attributing it to the recent regulatory advancements made by US authorities. This announcement comes on the heels of indictments against another wallet provider, Samourai Wallet. As a crypto investor, I’ll need to explore alternative options for managing my assets in compliance with these developments.

Beginning May 3, 2024, the PhoenixWallet app will no longer be available for download in US app stores. To prevent any potential loss of funds, US users are advised to take the following actions:

— Phoenix Wallet (@PhoenixWallet) April 26, 2024

American users are given two options to reduce fees: they can “shut down channels” on Android devices or “empty wallets” for iOS users. This action has raised questions from industry influencers such as Jack Dorsey and Jack Mallers, who question its necessity.

Acinq maintains the most significant node in the Lightning Network, carrying a significant reputation as it bears the responsibility for addressing Bitcoin’s scalability challenges. However, this role comes with risks, leading to concerns from Lightning Labs and Zeus, a wallet provider, who express dissatisfaction towards the Phoenix model and demand adherence to regulations and upholding self-custody principles.

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2024-04-27 01:56