Phoenix Wallet, a major Bitcoin wallet designed for Lightning Network payments, has announced that it will be removed from US app stores. The company advised its US-based users to empty their wallets.
Phoenix Wallet's decision follows recent statements by US authorities casting doubt on the regulatory status of self-storage wallet providers, Lightning service providers and even Lightning nodes. ACINQ, the company behind Phoenix Wallet, expressed concern that these entities could be considered Money Services Businesses and regulated as such.
Phoenix Wallet has provided instructions for users to empty their wallets. For Android users, they should go to Settings and select 'Close channels'. For iOS users, the option is 'Empty wallet' under Settings. The company noted that caution should be exercised against forcibly closing channels due to the potential for significant on-chain fees.
This development comes on the heels of the arrest of the founders of Samourai Wallet, a Bitcoin mixing wallet. They were charged in the Southern District of New York for allegedly brokering illegal transactions, including laundered funds.
In related news, the Federal Bureau of Investigation (FBI) has issued a warning to users about its ongoing operations against various unregistered cryptocurrency counterfeiters believed to be operating as money services businesses. The FBI warned users that they may experience financial disruptions as a result.
