Digital Chamber Challenges Lawsuit Over 3.7 Million Dormant Bitcoin

The lawsuit, initiated in May by a plaintiff known as Noah Doe and two Wyoming-based firms, seeks to have 3.7 million BTC declared abandoned under New York’s Personal Property Law. These addresses, which include holdings linked to Bitcoin creator Satoshi Nakamoto, are estimated to be worth roughly $234 billion. The plaintiffs claim they discovered a security flaw that locked owners out of these wallets and assert they have a right to the assets.

In its amicus filing, the Digital Chamber warned that the plaintiff’s legal theory would cast a shadow over self-custody practices, potentially destabilizing ownership standards in both crypto and traditional finance. Opposition to the case is mounting; a pseudonymous defendant has moved to dismiss the claim, arguing that Bitcoin addresses are merely data strings, not legal entities capable of being sued. M&A attorney Ian R. Cohen has also requested to participate to challenge the application of state lost-property laws.

Meanwhile, the premise of the lawsuit is being undermined by on-chain activity. Data from Galaxy Research shows that dozens of the addresses listed as "dormant" have recently moved funds, including one wallet that transferred 30 BTC after remaining inactive since 2011. New York Supreme Court Justice Kathy J. King has stayed the proceedings until oral arguments on July 14. Even a court victory for the plaintiffs would not guarantee control over the funds, as the lawsuit does not provide the private keys necessary to access the Bitcoin.