The Digital Chamber pushes back in high-stakes New York fight over 3.7M BTC
A major crypto trade group has weighed in on a sweeping New York lawsuit that aims to claim ownership of 39,069 dormant Bitcoin addresses holding an estimated 3.7 million BTC (roughly $234 billion at current prices).
In an amicus brief filed Monday, the Digital Chamber — which represents more than 250 digital-asset firms including exchanges, banks and investment firms — urged the New York Supreme Court to reject the plaintiffs’ theory that long-inactive, self-custodied Bitcoin wallets can be declared “abandoned property” under Article 7‑B of New York’s Personal Property Law. The association warned that treating self-custody as abandonable would create a “pervasive cloud on title across self-custody wallets,” undermine settled principles of digital property, and ripple beyond crypto into traditional finance.
Background of the suit
The case, filed in May by a plaintiff identified as Noah Doe and two Wyoming-based companies, asks the court to transfer ownership of 39,069 inactive Bitcoin addresses to the plaintiffs on the grounds that the addresses qualify as abandoned property. Timechain Index founder Sani estimates the contested addresses contain about 3.7 million BTC, and the list reportedly includes several addresses linked to Bitcoin’s creator, Satoshi Nakamoto.
Noah Doe says he discovered the wallets after identifying what he describes as a security vulnerability that permanently prevented some owners from accessing funds. According to the complaint, he spent more than a year trying to locate owners before filing suit and later assigned ownership interests in most of the claimed wallets to the two Wyoming companies.
Growing legal resistance
The Digital Chamber’s filing is the second amicus brief in the case. Legal opposition has expanded: a pseudonymous defendant calling themselves “John Doe 33” filed a motion to dismiss, arguing Bitcoin addresses are data strings—not legal entities—and thus cannot be sued. M&A attorney Ian R. Cohen has also asked to participate as amicus curiae, challenging the plaintiffs’ interpretation of New York’s lost‑property law.
On-chain activity complicates matters
As the litigation unfolds, a number of the addresses named in the suit have moved funds. Galaxy Digital’s head of research, Alex Thorn, noted that at least 31 of the contested wallets transferred a combined 17,527 BTC in June, compared with five addresses that moved 4,834 BTC in February. Galaxy Research also highlighted that address “1KV47” moved 30 BTC Saturday after lying dormant since August 2011.
Procedural status and practical limits
New York Supreme Court Justice Kathy J. King has stayed the case pending oral arguments set for July 14, blocking the plaintiffs from seeking a default judgment in the meantime. Even if the plaintiffs ultimately obtain a legal declaration of ownership, control of the Bitcoin itself remains uncertain: possession requires private keys, and the lawsuit does not establish who, if anyone, holds those keys.
Why it matters
The outcome could set a precedent for how courts treat self-custodied digital assets and lost-property claims, with consequences for custodial practices, estate planning for private‑key holders, and potentially for financial institutions that interact with digital assets. The Digital Chamber’s brief frames the dispute as more than a single property battle—arguing it’s a test case with industry-wide implications.
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