Alby Users Lose Bitcoin Due to Inactivity Policy, Strategy Holds 70,816 BTC Undisclosed

Alby Lightning Network wallet users have reported unexpected Bitcoin withdrawals from inactive legacy wallets, sparking widespread concern over a policy that allows the platform to remove funds after 12 months of inactivity. This policy, which was applied retroactively to wallets created in 2023 or earlier, has left many users unaware of missing funds until they logged in, raising significant questions about transparency and user consent.

The policy, embedded in updated terms of service, has caught many users off guard due to the lack of explicit user consent or prior notification. This development highlights the growing tension between wallet providers’ operational policies and user expectations regarding asset control and transparency. The crypto community has voiced strong opposition to Alby’s approach, with users describing the withdrawals as “shameless” and likening the practice to misappropriation. Influential voices have criticized the lack of clear communication, emphasizing the potential for this policy to set a dangerous precedent if adopted by other wallet providers.

In a parallel development, Arkham Intelligence has identified a series of previously undisclosed Bitcoin wallet addresses associated with Strategy, collectively holding approximately 70,816 BTC. This discovery has raised significant questions about corporate transparency in crypto asset custody, especially given Strategy co-founder Michael Saylor’s prior public emphasis on transparency and secure custody practices. The revelation invites scrutiny over how large-scale crypto holdings are reported and managed, emphasizing the importance of clear disclosure to maintain investor confidence and regulatory compliance.

The Arkham report highlights a broader industry challenge: ensuring that substantial crypto holdings are transparently disclosed and securely managed. As institutional and corporate participation in cryptocurrency markets grows, stakeholders demand higher standards of accountability. The undisclosed nature of these wallets contrasts with public expectations for openness, potentially impacting market perceptions and regulatory oversight. This case serves as a reminder that transparency and robust custody solutions remain critical pillars for sustainable growth in the crypto ecosystem.

The recent Alby wallet withdrawals and Arkham’s disclosure of undisclosed Strategy Bitcoin holdings collectively underscore pressing issues in crypto asset management—namely, user consent, transparency, and custody integrity. As wallet providers and corporate entities navigate evolving regulatory landscapes and user expectations, prioritizing clear communication and transparent practices will be essential to maintaining trust and safeguarding digital assets. Users are encouraged to review wallet terms carefully and stay informed about custody policies to protect their holdings effectively.