TLDR
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NY judge pauses case seeking 39,069 dormant Bitcoin wallets
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Court blocks default judgment bid over dormant Bitcoin wallets
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July hearing to test claim over dormant Bitcoin wallets case
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Amicus filing challenges ownership of dormant Bitcoin wallets
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Judge freezes lawsuit tied to $293B dormant Bitcoin wallets
A New York judge has paused a lawsuit targeting 39,069 dormant Bitcoin wallets, blocking any default judgment before a July hearing. The case seeks legal ownership over dormant Bitcoin wallets under New York’s lost-property statute. However, the stay now gives opponents more time to challenge the claim.
Judge Stops Case Before Default Push
Justice Kathy J. King signed the order to show cause on June 4. The court filed the order publicly on June 5. It stays all further proceedings tied to the plaintiffs’ declaratory judgment claim.
The order also blocks any inquest or default judgment before oral argument. The hearing will take place on July 14 in New York County Supreme Court. The plaintiffs cannot advance their ownership bid before that date.
King also removed standard language that would extend the pause beyond the hearing. As a result, the stay applies until the scheduled court session. A separate ruling also treated an earlier injunction request as moot.
Lawsuit Targets Dormant Bitcoin Wallets
The lawsuit names ABC Company, XYZ Company, and Noah Doe as plaintiffs. It targets John Does linked to 39,069 dormant Bitcoin wallets. The plaintiffs seek ownership under New York Personal Property Law Article 7-B.
The complaint claims Noah Doe used a proprietary algorithm to identify abandoned wallets. It also says he reported the addresses to the NYPD in several batches. Later, blockchain notices reached many addresses through OP_RETURN messages.
The legal theory treats dormant Bitcoin wallets as lost property after no response. However, that approach remains untested for blockchain assets in New York courts. The case also includes wallets linked in public reports to major Bitcoin history.
Amicus Filing Challenges Wallet Claim
Ian R. Cohen, a New York attorney and Bitcoin holder, moved to appear as amicus curiae. He does not represent any party in the lawsuit. His proposed brief challenges the plaintiffs’ use of lost-property law.
Cohen argues the statute covers tangible property held by a finder. He says blockchain addresses do not fit that framework. He also argues algorithmic discovery does not equal finding physical property.
The brief also highlights access and ownership problems. It says dormant Bitcoin wallets may remain controlled by owners who still hold private keys. Therefore, silence or inactivity does not prove abandonment.
Galaxy Research previously estimated the named addresses held about 3.8 million BTC. That value reached about $293.5 billion using May prices. Yet the complaint valued each wallet below $10 due to recovery uncertainty.
The filing also raised concerns over wallets linked to Mt. Gox and Satoshi-era mining. Such links could create conflicts with other legal and historical claims. For now, the July 14 hearing controls the next step.
