Blockchain industry group the Digital Chamber has filed an amicus brief asking a New York court to reject a controversial claim over tens of thousands of “dormant” Bitcoin addresses — a case that could reshape how self-custodied digital assets are treated under property law.
What happened
- The Digital Chamber’s brief, submitted Monday, opposes a lawsuit that asks the New York Supreme Court to declare 39,069 inactive Bitcoin addresses abandoned under Article 7‑B of New York’s Personal Property Law and transfer ownership to the plaintiffs. The addresses are reported to contain about 3.7 million BTC — roughly $234 billion at current prices — according to Sani, founder of blockchain analytics firm Timechain Index. The list reportedly includes addresses linked to Satoshi Nakamoto.
Why the trade group objected
- The Digital Chamber warned the court that treating self-custodied, dormant wallets as abandoned would create a “pervasive cloud on title across self‑custody wallets.” The brief argues the plaintiffs’ theory would undermine long‑standing principles of digital property and could have ripple effects beyond crypto into traditional finance. The Chamber represents more than 250 industry members, including exchanges, banks and investment firms.
Case background
- The case was filed in May by a plaintiff using the name Noah Doe alongside two Wyoming companies. Noah Doe alleges he found the wallets after identifying a security vulnerability that permanently prevented some owners from accessing coins. He says he spent more than a year trying to locate owners and later assigned interests in most of the claimed wallets to the Wyoming entities.
Growing legal opposition
- The Digital Chamber’s filing is the second amicus brief in the matter. Other pushback includes a motion by a pseudonymous defendant calling himself “John Doe 33,” who asked the court to dismiss the suit on the grounds that Bitcoin addresses are data strings, not legal entities that can be sued. M&A attorney Ian R. Cohen has also sought to file as amicus curiae, contesting the plaintiffs’ reading of New York’s lost‑property statute.
On‑chain activity complicates the claim
- Several wallets named in the suit have moved funds recently, calling into question whether they were truly abandoned. Galaxy Digital head of research Alex Thorn noted that at least 31 of the listed addresses transferred a combined 17,527 BTC in June (versus five addresses that moved 4,834 BTC in February). Galaxy Research also highlighted a long-dormant address, “1KV47,” which moved 30 BTC after being inactive since August 2011.
Court status and practical limits
- New York Supreme Court Justice Kathy J. King has stayed the case pending oral arguments scheduled for July 14, blocking plaintiffs from seeking any default judgment before that hearing. Even if the court ultimately rules in the plaintiffs’ favor, legal ownership would not automatically grant control of the Bitcoin — access still requires private keys, and the lawsuit does not establish possession of those keys.
Why it matters
- The outcome could set a major precedent for how lost or dormant digital assets are treated under state law. Industry groups warn a ruling for the plaintiffs could threaten self‑custody rights and create uncertain legal exposure for holders of private keys, while advocates for the plaintiffs argue the decision could recover property for rightful claimants. The case will be watched closely by the crypto industry, legal practitioners and the broader markets.
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