Phoenix Wallet has decided to remove itself from the Google Play Store and the Apple App Store in response to increased pressure from the U.S government. American users need to withdraw their funds by May 3, 2024, as the wallet will no longer be available after that date. This decision comes after concerns were raised about potential regulatory issues for self-custodial wallet providers and Lightning service providers in the U.S.

The move by Phoenix Wallet reflects a larger trend in the U.S to crack down on crypto companies. Recent arrests of individuals involved in Bitcoin mixing wallets and warnings from the FBI suggest a stricter approach towards unregistered crypto companies. Many enforcement actions have been taken by U.S authorities, including against Tornado Cash and Bitcoin Fog mixer operators.

Overall, Phoenix Wallet's decision to exit the U.S market highlights the challenges faced by crypto companies in the regulatory environment.