Pity that businesses are getting caught up in this money services/transmitter regulation, but yeah centering your service around being a custodial wallet without KYC wasn't going to last for very long.

I do think they offer a cool product, and the UX was slick, but I think they'd need to pivot into offering users the ablity to connect their own LN wallets, nodes with connected XPubs and mints, so they don't need to worry about the custody of funds.

I guess for the normies they could offer connections with Strikes API and just offload that drama to them instead