Bitcoin infrastructure developer Nostr Assets has temporarily halted customer deposits after surging user growth overwhelmed systems capacity.

In a Monday announcement, the service alerted users to refrain from sending funds as inbound volumes maxed out following onboarding of 70,000 new customers since October. Nostr Assets utilizes Bitcoin's Lightning and Taproot networks for transaction settlement.

The pause comes shortly after Nostr protocol creator Fiatjaf alleged Nostr Assets was operating as an affinity scam— claims the company dismissed as unfounded. Nostr Assets stated it remains committed to empowering builders leveraging both Bitcoin and the Nostr messaging network.

But victims of recent failed crypto projects understandably remain wary of new decentralized entrants needing to scale cautiously against technology and oversight limitations. Nostr Assets emphasized its trajectory hinges on aligned incentives and win-win relationships across its community.