Nayuta Inc. Announces Closure and Important Information for Nayuta Wallet Users

16 Sept

Nayuta Co., Ltd., a company founded in March 2015 with a focus on developing Lightning Network (LN) solutions, has announced its closure. Kenichi Kurimoto, CEO of Nayuta, shared the news on the company's official blog, citing both personal health reasons and shifts in the Lightning Network business landscape as the primary factors behind the decision.

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Reasons for Closure

Kurimoto explained that he is undergoing treatment for a health condition that will make it difficult for him to continue managing the business as usual. While his condition has improved, he stated that it would be challenging to maintain regular operations without overworking, a factor that contributed to the company's decision to close.

In addition to health concerns, Kurimoto highlighted the evolving nature of the Lightning Network, which was originally developed for decentralized, real-time Bitcoin payments. Over time, however, the business landscape has increasingly favored custodial Lightning Network solutions, a trend that Nayuta struggled to keep up with as it had focused on non-custodial strategies. The company was in the process of pivoting, but Kurimoto's health challenges made it difficult to complete this transition.

Impact on Nayuta Wallet Users

As part of the closure, Nayuta will shut down its Lightning Service Provider (LSP) node within the next three months. Nayuta Wallet, a non-custodial wallet, will still hold users' Bitcoin even after the company's operations cease, but Lightning Network transactions will no longer be possible. Users are strongly advised to transfer their Bitcoin to other LN-compatible wallets during this time to avoid potential issues.

Specifically, Kurimoto recommended users close their LN channels and move their funds before Nayuta's LSP node is deactivated. Once the node is shut down, Bitcoin held in the wallet will revert to the base layer of the Bitcoin blockchain, subject to standard blockchain transaction fees. It is important to note that users with amounts smaller than the required base layer fee may not be able to confirm transactions on the blockchain, rendering those funds immovable.

Timeline and Communication

Nayuta has provided a three-month window for users to transfer their Bitcoin. Any future updates regarding the wallet closure will be shared via the Nayuta blog and its Telegram group. Users are encouraged to stay informed through these channels to ensure a smooth transition.

In his announcement, Kurimoto expressed deep gratitude to all those who have supported Nayuta since its inception. He reassured users that, despite the company's closure, the Bitcoin held in their wallets will remain secure and accessible via the app, provided that they act within the recommended time frame.

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