Paul Sztorc says Bitcoiners are fooling themselves about Lightning

Bitcoin developer Paul Sztorc has reopened one of the oldest arguments in Bitcoin. His charge is that the community is lying to itself about the Lightning Network. On October 4, 2026, Sztorc claimed that custodial Lightning services account for more than 80% of all Lightning payments. He then compared the way those services are promoted to the Theranos fraud scandal. Lightning has long been pitched as the answer to a simple question: how do you buy coffee with Bitcoin without waiting for a block? If Sztorc is right, most people answering that question are quietly handing their keys to someone else. What Sztorc is actually arguing Lightning is a second layer that sits on top of Bitcoin. Users open payment channels with each other, send funds back and forth off-chain, and settle on the main chain later. The catch is who holds the tab. In a custodial setup, a company holds your Bitcoin and manages the channels for you. In a non-custodial setup, you control your own funds and channels directly. Sztorc’s core claim is that custodial services carry the overwhelming share of Lightning activity. He argues that real non-custodial usage remains minimal and that it is not suitable for everyda...