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Phoenix and Wasabi Leave US Market As Authorities Clamp Down on Self-Custody Wallets

April 29, 2024

The developers of Bitcoin (BTC) wallets Phoenix Wallet and Wasabi Wallet have announced that they will stop providing services to US consumers.

In a statement, Wasabi Wallet maker zkSNACKs says it is now blocking US citizens and residents from visiting its websites, downloading its wallet and using related products and services such as API (application programming interface) and RPC (remote procedure call) interfaces. 

“An IP address blocking for US residents is effective on wasabiwallet.io, api.wasabiwallet.io and zksnacks.com…

If you are a United States citizen or United States resident, you are not allowed to visit any sites aforementioned, download Wasabi Wallet or use the Wasabi Wallet coinjoin feature.”

Meanwhile, Phoenix Wallet says its app will no longer be available on US app stores by May 3rd and tells US-based users to withdraw their funds. 

“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 and Wasabi Wallet are leaving the US market following recent enforcement actions involving two self-custody cryptocurrency wallets.

Last week, authorities arrested Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill for allegedly operating an unlicensed money-transmitting business.

Earlier this month, the U.S. Securities and Exchange Commission (SEC) also sent Consensys, the creators of MetaMask, a Wells Notice indicating an impending enforcement action against the firm. 

ACINQ, the company behind Phoenix Wallet, says self-custody crypto wallet providers face regulatory challenges in the US.

“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.”

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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