Alby Deducted Inactive Bitcoin Balances After Policy Update

On June 10, several users reported that their Bitcoin Lightning Network wallet balances in Alby appeared to have been deducted by the platform. The issue stems from an update in Alby's terms of service, which was modified in March 2025. The updated documentation states that users who had not withdrawn excess funds from their old Alby accounts created in 2023 or earlier, using a shared wallet architecture, were notified over a year ago to do so. The platform reserves the right to deduct the entire remaining balance from accounts that have had no transaction activity for 12 consecutive months.

This policy aims to manage long-term inactive accounts effectively. Users who have not engaged in any transactions for a year are at risk of having their balances deducted. The platform's decision to enforce this policy has led to concerns among users who were unaware of the changes or did not act on the notifications sent over a year ago. The situation highlights the importance of staying informed about updates to terms of service and the potential consequences of inactivity in digital wallets.

The incident serves as a reminder for users to regularly check their accounts and stay updated on any changes in the platform's policies. It also underscores the need for clear communication from platforms regarding significant updates that could affect users' funds. As digital wallets and cryptocurrency platforms continue to evolve, users must remain vigilant to protect their assets and ensure compliance with the platform's terms of service.