Search on TFTC Cuts Off Banking Services to Lightspark Cuts Off Banking Services to Lightspark

Apr 26, 2024
Bitcoin Cuts Off Banking Services to Lightspark

Lightspark, a lightning infrastructure service provider, has recently faced a financial blockade as their fiat financial services provider,, terminated their services. According to a Twitter announcement by Lightspark's CEO, David Marcus, based their decision on the requirements of their processing banks, leading to the shutdown of Lightspark's account.

The incident unfolded when notified Lightspark on Tuesday that they could no longer provide services due to bank-imposed restrictions. By the following day, Lightspark's account was officially shut down. In a public statement, Marcus expressed frustration over the situation, emphasizing that the terms of service referenced by did not align with the actual services offered by Lightspark.

"Cutting access to our legacy financial system for Bitcoin/crypto companies — even for pedestrian fiat-only services — is still alive and well," Marcus said. He further criticized the move by stating, "Whether your business is in crypto, or not, don’t work with companies that have a patronizing approach to what’s acceptable or not when your activity is 100% legal and compliant."

Marcus also highlighted the ease of replacing with "better, more modern service providers," suggesting that the company's business model is outdated and not in line with current market needs.

As of now, Lightspark has not announced any specific plans for shifting to a new financial services provider.

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