Blink Wallet Adds Inactivity Fee to Custodial Accounts, Accelerating Migration to Self Custody

Blink Wallet announced a new $1 a month inactivity fee, aimed at custodial accounts that have not logged in to the app in over 12 months. 

The decision was put into motion in early September via a Terms of Service change, with push notifications sent out to inactive users, and the first charge made by mid-October. Fees charged will be refunded if users log back in within 12 months, according to a blog post published by the company. 

The fee, which only affects custodial accounts, serves to relieve the burden of inactive accounts on the startup. According to the announcement, these inactive accounts have ongoing costs such as “ledger and infrastructure, retention of verification records, compliance monitoring and reporting, and support claims.” These costs are in turn borne by active user accounts via normal in-app transaction fees. 

A source familiar with the matter told Bitcoin Magazine that around a hundred thousand such accounts fit the inactive category at the time of the first fee charge, with an aggregate balance of over $800,000. The first fee pulled in about $45,000, mostly from accounts that had dust amounts of bitcoin inactive for over a year. None of these figures could be independently verified.