Bitcoin Lightning Network Wallet Alby is ramping up criticism after several users reported unexpected withdrawals from their accounts.
The deduction, known as inactive fees, raises concerns about transparency and custody risks.
Community complaints about Albee
The controversy gained traction on June 10 after Yu Xian, co-founder of blockchain security company Slow Mist, revealed that $192 worth of Bitcoin was removed from his Alby account without direct approval.
According to Xian, the wallet deducted the funds on May 26th. He later discovered that Alby updated its terms of service a few weeks ago and introduced a clause allowing such fees to be made to inactive accounts.
An updated policy highlighted in an email sent on May 1 says that accounts without activity for 12 months will be subject to inactivity fees. Xian denounced the fee, calling it a “steal agreement,” sparking wider debate across the crypto community.
Other Albie users quickly reflected Xian’s experience. Pseudonym X user “1999_eth” posted evidence that he lost more than $590 on a similar deduction. Another reportedly lost more than $5,400. These revelations have fueled concerns that many users may have missed email warnings.
“It’s not a rug.”
Meanwhile, Luke Gao, founder of the LNFI network, tried to clarify the situation, explaining that Alby previously provided custody wallets but is moving to an independent model through Albyhub.
Luke wrote on social media:
“This is not a rug. The funds are safe.”
He added that users had received multiple notifications about the shift in the last 18 months. Furthermore, he
According to Luke, affected users can obtain funds by contacting Albee’s support team.
Despite this security, many in the crypto community remain important, claiming that despite disclosure of inactivity fees, the deduction is similar to embezzlement.
Some warn that this practice reveals Alby’s ability to access user funds without direct consent, allowing them to set a nasty precedent.
Albee has not issued or responded to an official statement yet. Encryption Request a comment.