Updated on:12/28/2025 05:31 PM 
The Bitcoin Lightning Network ecosystem is currently facing significant controversy as Alby, a prominent wallet provider, implements a new inactivity fee policy that has resulted in unexpected fund deductions from user accounts. This development has sparked widespread discussion about transparency and custodial responsibilities in the cryptocurrency space.
The debate surrounding Alby's new fee structure intensified on June 10 when Yu Xian, co-founder of blockchain security firm SlowMist, revealed that approximately $192 worth of Bitcoin had been withdrawn from his Alby account without his direct authorization.
According to Xian's account, the wallet provider deducted these funds on May 26. He later discovered that Alby had updated its Terms of Service several weeks prior, introducing a clause permitting such deductions for dormant accounts.
The revised policy, which was communicated via email on May 1, stipulates that accounts showing no activity for 12 consecutive months become subject to inactivity fees. Xian strongly criticized this approach, labeling it a "stealing agreement" and igniting broader discussion throughout the cryptocurrency community about custodial wallet practices.
Other Alby users quickly came forward with similar experiences. A pseudonymous X platform user, "1999_eth," presented documentation showing losses exceeding $590 through similar fee deductions. Another user reportedly had over $5,400 removed from their account. These disclosures have raised concerns that many users may have overlooked the email notifications regarding the policy changes.
In the midst of growing criticism, Luke Gao, founder of Lnfi Network, attempted to provide clarity regarding the situation. He explained that Alby had previously operated as a custodial wallet service but is now transitioning toward a self-custody model through AlbyHub.
Through social media communications, Luke emphasized that users had received multiple notifications about this strategic shift over the past 18 months. He clarified that affected users can still recover their funds by directly contacting Alby's support team.
Despite these assurances, significant segments of the cryptocurrency community remain skeptical. Critics argue that despite the disclosed inactivity fee policy, the unilateral fund withdrawals constitute a form of embezzlement.
Industry observers warn that this approach could establish a concerning precedent, demonstrating Alby's capacity to access user funds without explicit consent. As of now, Alby has not issued a formal public statement or responded to inquiries from media outlets like CryptoSlate regarding the matter.
