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Bitman 6mo ago 💬 15

Bitcoin Wallet Begins Charging ‘Inactivity Fee’ to Users; Amounts Reach Up to $30,000

Users of a Bitcoin wallet are accusing its developers of moving their coins without permission. Numerous reports about the issue can be found on social media.

The transfers are reportedly an “inactivity fee” charged by the wallet, which operates on both the native Bitcoin network and the Lightning Network. The fee is outlined in its terms of service.

Unlike other well-known wallets, such as Electrum or Ledger, this wallet offers a shared custody solution. As a result, the developers also have access to the funds.

As an example, a user shared a screenshot showing that the developers deducted $200 in Bitcoin from their wallet. The invoice cites an “inactivity fee” as the justification.

In another post, several similar comments can be found. While some question the motivations behind these transfers, others threaten to sue the company.

“All the money in my nostr:nprofile1qqsyv47lazt9h6ycp2fsw270khje5egjgsrdkrupjg27u796g7f5k0spr4mhxue69uhkummnw3ez6ur4vgh8wetvd3hhyer9wghxuet5qydhwumn8ghj7mn0wd68ytf39ehxymewv9hxwctwdyhxxmcle4rs5 was transferred, can you fix this? It was transferred by the official.”

“You bastard”

“Thief”

“All the money in my nostr:nprofile1qqsyv47lazt9h6ycp2fsw270khje5egjgsrdkrupjg27u796g7f5k0spr4mhxue69uhkummnw3ez6ur4vgh8wetvd3hhyer9wghxuet5qydhwumn8ghj7mn0wd68ytf39ehxymewv9hxwctwdyhxxmcle4rs5 was transferred, can you fix this?”

“Why did you transfer my money without warning? Please provide the refund method.”

“Get ready for a lawsuit, you damn fraudulent company.”

Other screenshots show deducted amounts of $42, $117, $1047, and even $30000. In other words, it is not a fixed-value fee.

“The Alby wallet redefines the meaning of: ‘Your money is my money.’ My goodness, a new way to steal money!”

“The main reason is that, according to nostr:nprofile1qqsyv47lazt9h6ycp2fsw270khje5egjgsrdkrupjg27u796g7f5k0spr4mhxue69uhkummnw3ez6ur4vgh8wetvd3hhyer9wghxuet5qydhwumn8ghj7mn0wd68ytf39ehxymewv9hxwctwdyhxxmcle4rs5 terms of service updated in March 2025: to more efficiently manage accounts inactive for long periods, the platform withdraws the entire remaining balance from accounts that have had no transactions for 12 consecutive months,” wrote the user KuiGas.

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Discussion

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Bitman 6mo ago

Although nostr:nprofile1qqsyv47lazt9h6ycp2fsw270khje5egjgsrdkrupjg27u796g7f5k0spr4mhxue69uhkummnw3ez6ur4vgh8wetvd3hhyer9wghxuet5qydhwumn8ghj7mn0wd68ytf39ehxymewv9hxwctwdyhxxmcle4rs5 has not publicly responded to the criticism, its terms of use state that it may deduct the entire balance from customers' wallets if their accounts have been inactive for more than 12 months.

The text notes that users were notified about this change over a year ago.

“To effectively manage these inactive accounts, we reserve the right to deduct the entire remaining balance from an old Alby (legacy) shared custody wallet after 12 consecutive months of inactivity, defined as the absence of completed transactions during that period.”

“This fee applies only to inactive old Alby (legacy) shared custody accounts created in 2023 or earlier and does not affect active or inactive Alby Hubs, fee credits, or other wallets linked to an Alby account,” the text continues.

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The Pentographer 6mo ago

Alby might have just shot themselves in the foot.

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inpc 6mo ago

Amazed that some folks have $100k+ in a custodial wallet untouched for so long.

Money doesn’t buy sense it would seem… I go full lock down the moment I have more than $5, which is rarer and rarer these days. 🔐

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nicnym 6mo ago

wtf do you expect using a custodial wallet that they said multiple times they want to shut down and get people to withdraw their money

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Hypno Kitty 6mo ago

Wow. If true, then @alby is a straight up scam.

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Hypno Kitty 6mo ago

I stand corrected -- if nostr:nprofile1qqsyv47lazt9h6ycp2fsw270khje5egjgsrdkrupjg27u796g7f5k0sppemhxue69uhkummn9ekx7mp0qy08wumn8ghj7mn0wd68yttsw43zuam9d3kx7unyv4ezumn9wshsv5th4f has been trying to shut down and asked users over a year ago to remove their btc, I guess you can't blame them for transferring remaining balances. My expectation would be that if any user later asks for their transferred btc back, alby will give it to them.

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2Pac 6mo ago

How does the saying go? Not your keys…

The $30,000 screenshot doesn’t make sense it was less than a million sats which is about $1000

Still sucks to get rugged but 30K vs 1K is very different

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inpc 6mo ago

“Not my keys, I have a banana on my head”.

At least I guess that’s what they’re thinking…

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hit with a hint of s 6mo ago

Shit, does this apply to alby hub too?

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Kayne 6mo ago

🤔 concerning.

Glad I don't use nostr:nprofile1qqsyv47lazt9h6ycp2fsw270khje5egjgsrdkrupjg27u796g7f5k0spzemhxue69uhk2er9dchxummnw3ezumrpdejz7qgwwaehxw309ahx7uewd3hkctcyq5fje

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ChadF and 33 others 6mo ago

If these people haven't used Alby in over a year how did they find out the funds moved? Seems fishy to me.

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Ryan 6mo ago

Alby sunset their custodial wallet a long time ago. If you're still on it you should contact them maybe.

nostr:nevent1qqsyew5da5ljk44gccsnjpfjsh4k2xsh4cm34w7ntg0gmrxacs05d6gppemhxue69uhkummn9ekx7mp0qgsp986339w392eunnwzdjezhkaem6gcuhcul7vfg0ecvrh48fzpsqcrqsqqqqqp5cdf9g

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Diff-thong 6mo ago

Classic