Post
Topic
Board Development & Technical Discussion
Re: What will happen to a wallet when the wallet company closes
by
sheenshane
on 14/05/2023, 23:19:54 UTC
What would happen to a wallet when the company hosting the wallet closes down?
Has any wallet company ever closed down before or experienced issue that affected holders Bitcoin?
Most of them declared bankruptcy.
On this list, you will see a few list of bitcoin wallet companies listed and said close because of bankruptcy or forced to close by the government, especially in the US which strictly regulates crypto.

That is why choose a non-custodial and open-source wallet and try to differentiate what is Custodial vs. Non Custodial Wallets.  Choose the wallet where you hold the private keys to your wallet, which means you are the only one who can access your funds, and those wallets are generally considered to be more secure than custodial wallets because they don't rely on third-party services to store your private keys.

My answer to your last question is yes there is.
It's Mt. Gox, filed for bankruptcy in 2014 after losing a huge amount of Bitcoins due to a hack, and then people learn how to use a con-custodial wallet.