Alby faces backlash over ‘inactivity fees’ leading to unexpected Bitcoin withdrawals
According to Xian, the wallet deducted the funds on May 26. He later discovered that Alby had updated its Terms of Service weeks earlier, introducing a clause that allows such fees for inactive accounts
Alby, a Bitcoin Lightning Network wallet, is facing mounting criticism after several users reported unexpected withdrawals from their accounts.
The deductions, described as inactivity fees, have raised concerns about transparency and custodial risks.
Community complaints against Alby
The controversy gained traction on June 10 after Yu Xian, co-founder of blockchain security firm SlowMist, disclosed that nearly $192 worth of Bitcoin was removed from his Alby account without his direct approval.
According to Xian, the wallet deducted the funds on May 26. He later discovered that Alby had updated its Terms of Service weeks earlier, introducing a clause that allows such fees for inactive accounts.
The updated policy, highlighted in an email sent on May 1, stated that accounts with no activity for 12 months are subject to inactivity fees. Xian slammed the fee, calling it a “stealing agreement” and sparking broader debate across the crypto community.
Other Alby users soon echoed Xian’s experience. A pseudonymous X user, “1999_eth,” posted evidence of losing over $590 in similar deductions. Another user reportedly lost more than $5,400. These revelations fueled concerns that many users may have missed the email warnings.
