Assuming a legal defense fund could be set up, the community should welcome a lawsuit to decide what is considered a money service business. I’m sure COPA would step up. 

 I wonder what you would have done in their shoes 

 I think they're trying to avoid prison. Not an easy decision. 

 I assure you it's not easy to close down business in the biggest market, it hurts a lot, but risking getting arrested and leaving your children is probably not worth it 

 Sometimes decisions are made for us, based on our current life situations. 

 One of the arrests was in Portugal, I feel ashamed. 

 Wasn't pheonix self-hosted? Did it connect to them for something in the backend that brings them risk? 

 The app on your phone is a node so your own funds are self custodial. But it connects to their node for routing liquidity. This move by them seems to imply (I'm only guessing) that they believe their routing and liquidity services could bring them under legal scrutiny.  

 Without connection from your app/node to a good routing node, your own funds are unable to be sent anywhere via lightning even though you still have the private keys to the funds.  

 Lightning is going to get harder to run then. I hear self-hosting your own service is a major headache, especially with the many different methods (that I don't know the differences between) 

 This will be great for further tor/i2p LN node advances. Nothing like finally being threatened by the network's biggest enemy. 

 feels like we're not acting at all

nostr:note1e9k9rlkkyegzqpx0x5w95pmgu0f3chtnjtqy9x8ffddcvq88algqjjyjxj  

 You can’t blame them 

 I do blame them. They are overreacting and creating hysteria by doing this.  

 You have 2 men facing 25 years in prison for operating a non-custodial bitcoin wallet that, in the eyes of the DOJ - which categorizes them as a money transmission business  (https://www.justice.gov/usao-sdny/pr/founders-and-ceo-cryptocurrency-mixing-service-arrested-and-charged-money-laundering) is not THAT much different from phoenix wallet. There is no regulatory clarity right now 

 You are grossly oversimplifying the accusations made against them to the point that your point is irrelevant and borderline fearmongering. Stop it.  

 What are the accusations? 

 It would behoove you to read the entire document here that outlines what they're being accused of. 

https://www.justice.gov/usao-sdny/media/1349321/dl 

 I’ve read it 

 Then you misunderstood it, and/or you are misapplying what you read to make outrageous claims that have no merit. No sense in me trying to continue this discussion. Go enjoy your chicken little moment.  

 Didn’t misunderstand it. Stand by what I said. Gfy 

 Serious Question --  Isnt Phoenix Wallet part of the blockstream ecosystem? Does thi s mean that self custoding in Blockstream jade would be in jeopardy is we follow that logic?   

 No. Phoenix is developed by ACINQ