Phoenix and Wasabi leave US market as authorities crack down on self-storage wallets

The developer of Bitcoin (BTC) wallets Phoenix Wallet and Wasabi Wallet has announced that it will stop offering its services to U.S. consumers.

In a statement, Wasabi Wallet manufacturer zkSNACKs Called It currently blocks US citizens and residents from visiting websites, downloading wallets, and using related products and services, such as application programming interfaces (APIs) and remote procedure call (RPC) interfaces.

“Blocking IP addresses for US residents is effective on wasabiwallet.io, api.wasabiwallet.io, and zksnacks.com…

If you are a U.S. citizen or resident of the United States, you cannot visit the aforementioned sites, download Wasabi Wallet, or use the Wasabi Wallet coin join feature.

Meanwhile, Phoenix Wallet Called The app will no longer be available in US app stores until May 3, and US-based users are being told to withdraw their funds.

“US users will have to empty their wallets.

– Settings > Close Channel (Android)

– Settings > Drain Wallet (iOS)

We recommend not *forcing* the channel to close as the on-chain fees can be significant.”

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

Last week, authorities arrested Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill on charges of operating an unlicensed money transfer business.

Earlier this month, the U.S. Securities and Exchange Commission (SEC) also sent a Wells notice to Consensys, the creator of MetaMask, indicating that enforcement action against the company was imminent.

ACINQ, the company that operates Phoenix Wallet, Called Self-custodial cryptocurrency wallet providers are facing regulatory challenges in the United States.

“Recent announcements from U.S. authorities have raised doubts about whether self-managed wallet providers, Lightning service providers, and even Lightning nodes can be considered and regulated as financial services businesses.”

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