Grid's common account model permits a Spark-backed Embedded Wallet to be FROZEN, a status that blocks sending and receiving

What the evidence shows

Technical and product details

1. Documented behavior

   Grid's common InternalAccount object requires both type and status. Its type enum includes EMBEDDED_WALLET, which Grid documentation identifies as the self-custodial wallet underlying Global Accounts. 124

   Supporting material shown on this page

   InternalAccountPinned source code · github.com · checked 2026-07-14

   17    type: string
   18    description: The ID of the customer associated with the internal account. If this field is empty, the internal account belongs to the platform.
   19    example: Customer:019542f5-b3e7-1d02-0000-000000000001
   20  type:
   21    $ref: ./InternalAccountType.yaml
   22  status:
   23    $ref: ./InternalAccountStatus.yaml

   InternalAccountTypePinned source code · github.com · checked 2026-07-14

   12  holding account used as the source for Payouts flows).
   13
   14  - `INTERNAL_CRYPTO`: A Grid-managed crypto holding account denominated in a
   15  stablecoin such as USDC.
   16
   17  - `EMBEDDED_WALLET`: A self-custodial Embedded Wallet provisioned for the
   18  customer. Outbound transfers require a session signature produced by the

   Global Accounts on SparkOfficial documentation · docs.lightspark.com · checked 2026-07-14
2. Documented behavior

   The common FROZEN status means the account cannot send or receive payments and says Grid may apply the status in response to compliance or fraud signals. 13

   Supporting material shown on this page

   InternalAccountPinned source code · github.com · checked 2026-07-14

   17    type: string
   18    description: The ID of the customer associated with the internal account. If this field is empty, the internal account belongs to the platform.
   19    example: Customer:019542f5-b3e7-1d02-0000-000000000001
   20  type:
   21    $ref: ./InternalAccountType.yaml
   22  status:
   23    $ref: ./InternalAccountStatus.yaml

   InternalAccountStatusPinned source code · github.com · checked 2026-07-14

   19  - `CLOSED`: The account cannot send or receive payments. A customer can
   20  initiate the closing of an internal account, after which the account
   21  transitions to this status.
   22
   23  - `FROZEN`: The account cannot send or receive payments. Grid may freeze an
   24  account in response to compliance or fraud signals; payments are blocked
   25  while the account remains frozen.

Scope control

What this does not establish

• The schemas establish an allowed state combination and its documented meaning. They do not show a production Embedded Wallet in that state or identify whether enforcement occurs in Grid, private Sparkcore, the SSP, Spark Operators, or several layers. 1234

Sources and excerpts

Primary sources

The relevant details and available source-code excerpts appear alongside the claims above. This list preserves the complete original-source trail for independent verification.