In response to the increasing pressure from the United States government, Phoenix Wallet, a non-custodial Bitcoin lightning wallet, has announced its decision to remove itself from the Google Play Store and the Apple App Store. As a result, American users are advised to withdraw their funds from their wallets before May 3, 2024, when the removal will take effect. However, Phoenix Wallet cautions against force-closing channels during this process to avoid potential high on-chain costs. This move aligns with the concerns raised by ACINQ, the developer of Phoenix Wallet, who hinted at a potential shutdown of the Wallet service in a previous post.
This decision by Phoenix Wallet reflects a growing trend among crypto companies in the United States, contributing to discussions surrounding the government’s crackdown on such entities. The recent arrest of Keonne Rodriguez and William Lonergan Hill, the founders of the Bitcoin mixing wallet Samourai, by the Southern District of New York, on charges of conspiracy to launder money and operating a money-transmitting company without the necessary license, further emphasizes the regulatory scrutiny faced by crypto companies. The FBI has also issued a notice informing crypto users about its actions against unregistered crypto companies suspected of providing money services, warning of potential financial disruptions.
Various enforcement measures, including the sanctioning of Tornado Cash addresses and the prosecution of the operator of the Bitcoin Fog mixer, have been documented by U.S. authorities. Today’s highlighted crypto news includes the price dip of Solana’s (SOL) amidst an exchange transfer, leaving many wondering about the next steps for this cryptocurrency.
