Users of the Alby Lightning Network wallet reported unexpected Bitcoin withdrawals from inactive legacy wallets due to a retroactive inactivity clause. The policy permits fund removal after 12 months of dormancy but was applied without explicit user consent, drawing criticism over transparency failures.
Crypto community members warn this incident could establish a precedent for other wallet providers to implement similar clauses, potentially compromising user control over dormant assets. The backlash highlights growing unease about custodial practices in decentralized finance ecosystems.
Separately, Arkham Intelligence uncovered approximately 70,816 BTC ($7.6 billion) in undisclosed Bitcoin holdings linked to Strategy. This discovery contradicts co-founder Michael Saylor’s public advocacy for transparency, raising questions about corporate disclosure standards in cryptocurrency custody.
The Strategy wallet revelation underscores persistent industry challenges regarding asset visibility and secure custody practices. Both cases emphasize the critical need for unambiguous communication and consent mechanisms in crypto asset management.
These incidents collectively spotlight vulnerabilities in user agreements and corporate transparency, stressing their importance for maintaining trust and meeting evolving regulatory expectations across digital asset platforms.