A controversial lawsuit in New York is drawing attention across the crypto industry after an anonymous plaintiff attempted to claim ownership of billions of dollars worth of dormant Bitcoin, including wallets widely believed to belong to Bitcoin creator Satoshi Nakamoto.
The case was filed by a pseudonymous individual known as “Noah Doe” along with two unnamed Wyoming-based companies. Together, they are seeking legal ownership of 39,069 Bitcoin addresses that reportedly hold around 3.8 million BTC roughly 18% of Bitcoin’s total supply. The addresses targeted in the lawsuit include more than 21,000 wallets commonly associated with Satoshi Nakamoto and believed to contain approximately 1.09 million BTC.
Lawsuit Relies on New York Lost Property Law
The plaintiffs argue that these Bitcoin wallets should be classified as abandoned or lost property under New York law.
According to court filings, the group claims it identified dormant Bitcoin addresses, reported them to authorities, and attempted to notify wallet owners through public notices and blockchain messages. The lawsuit argues that because the wallets have allegedly remained inactive for years, ownership should transfer to the finder under New York’s lost-property framework.
The legal theory is unusual because it attempts to apply traditional lost-property rules originally designed for physical items to digital assets secured by cryptographic keys.
Nearly $300 Billion in Bitcoin at Stake
The scale of the claim has surprised many observers.
The targeted addresses collectively hold nearly 3.8 million BTC, which would be worth more than $290 billion at current market prices. Among the wallets listed are addresses believed to belong to Satoshi Nakamoto, certain historical Bitcoin addresses linked to the Mt. Gox era, and even addresses that researchers say may be permanently inaccessible.
One of the more controversial aspects of the filing is the valuation used by the plaintiffs. Court documents reportedly claim that each wallet is worth less than $10 because the private keys are unavailable. This valuation is important because it allows the plaintiffs to pursue a simplified process under New York’s lost-property statute.
Crypto Lawyers Push Back
The lawsuit has already faced significant criticism from legal experts and blockchain researchers.
Several attorneys argue that Bitcoin ownership is determined by control of private keys, not simply by identifying a wallet address. Critics say that finding an inactive address does not grant ownership rights over the assets stored within it.
Attorney Ian R. Cohen, who filed arguments in the case, stated that New York’s lost-property laws were never designed for self-custodied cryptocurrencies. He maintains that possession of a private key remains the defining factor in proving Bitcoin ownership.
Dormant Wallet Claim Faces Additional Challenges
Researchers have also questioned the lawsuit’s central argument that the targeted wallets are abandoned.
Blockchain analysis reportedly found that many of the addresses included in the claim received transactions or showed activity during recent years. If confirmed, such activity could weaken the argument that the wallets were abandoned or forgotten by their owners.
Industry analysts have further noted that inactivity alone does not prove a Bitcoin wallet has been abandoned. Long-term holders often leave coins untouched for years without losing ownership rights.
Court Pauses Proceedings
The case has now reached a critical stage.
A New York judge has temporarily paused the proceedings and scheduled further review. Reports indicate that a hearing is expected on July 14, while legal arguments surrounding the validity of the claim continue to unfold.
The outcome could have broader implications for how courts treat dormant digital assets, although many legal observers remain skeptical that the plaintiffs’ argument will ultimately succeed.
Why the Crypto Industry Is Watching
The lawsuit is attracting widespread attention because it touches on one of the core principles of Bitcoin ownership: control through private keys.
If a court were ever to accept the argument that inactive Bitcoin wallets can be claimed under traditional lost-property laws, it could raise important questions about digital asset ownership. However, legal experts say the current case faces significant hurdles before any such precedent could be established.
For now, the mystery surrounding Satoshi Nakamoto’s massive Bitcoin holdings remains intact, while one of the most unusual legal battles in crypto history continues to unfold.
