Phoenix Wallet U.S. withdrawal (May 2024)
In May 2024, ACINQ removed the Phoenix Wallet from the U.S. App Store and Play Store, citing regulatory uncertainty around U.S. enforcement against non-custodial Lightning wallets.
What happened
- May 3, 2024: ACINQ announces that Phoenix Wallet will no longer be available on U.S. app stores.
- The trigger cited: a FinCEN proposed rule from October 2023 that could expand money-services-business obligations to include non-custodial wallet operators in some interpretations.
- Phoenix remains a self-custody wallet — ACINQ does not hold user funds — but ACINQ operates the Lightning Service Provider (LSP) infrastructure that the wallet uses, which is the operator-side function that draws regulatory attention.
- Non-U.S. users continue to use Phoenix normally; U.S. users have to sideload or switch wallets.
Why it matters
Phoenix was the most-recommended self-custody mobile Lightning wallet from the team behind eclair (one of the major Lightning implementations). Its U.S. withdrawal signaled the broader regulatory pressure on Lightning Service Providers serving U.S. users and shifted U.S.-based Lightning users toward Zeus or Breez SDK-based alternatives.
Status in 2026
Phoenix continues to operate normally outside the U.S. U.S. users have switched to Zeus Wallet (which can run an embedded node), to running their own LND/CLN nodes, or to custodial alternatives. ACINQ's broader product line (eclair, Phoenix-d for desktop) remains active.
Related directory entries
Sources
Explainer reviewed .
Cite as: https://fuckyc.org/explainers/phoenix-wallet-us-withdrawal-2024/