TLDR
- A New York judge has stayed a lawsuit targeting 39,069 dormant Bitcoin wallets worth an estimated $234 billion
- The case was filed by a pseudonymous plaintiff called “Noah Doe” using New York’s lost-and-found property law
- Attorney Ian R. Cohen filed an amicus brief arguing Bitcoin wallets cannot be legally “abandoned” under existing statutes
- Several of the targeted wallets have started moving funds since the lawsuit became public
- A hearing is set for July 14 to decide whether the amicus brief will be admitted
A New York Supreme Court judge has paused a lawsuit that attempted to claim ownership of nearly 40,000 dormant Bitcoin wallets. The case, filed by a pseudonymous plaintiff known as “Noah Doe,” targets wallets holding an estimated 3.8 million BTC, worth around $234 billion at current prices.
ICYMI: A New York Supreme Court judge has paused a high-profile lawsuit seeking ownership of nearly 40,000 dormant Bitcoin wallets.
The case, which could have major implications for abandoned digital assets and crypto ownership rights, has been stayed pending further⌠pic.twitter.com/EcYhSssn6R
— The Crypto Times (@CryptoTimes_io) June 8, 2026
Judge Kathy J. King signed an order on June 4 and filed it publicly on June 5, staying all proceedings including any move toward a default judgment. A hearing is now scheduled for July 14 at the New York County courthouse.
The case, styled ABC Company, XYZ Company, and Noah Doe v. John Does 1-39,069, was filed on March 11, 2026, and amended on May 1. Noah Doe claims he built an algorithm that identified dormant wallets with a security vulnerability. He delivered USB drives containing the wallet addresses to the NYPD’s 17th Precinct between December 2024 and April 2025.
He then hired a cyber expert to send OP_RETURN messages to each wallet, directing holders to a webpage where they had 90 days to prove their wallets were not abandoned. Of 42,001 wallets originally identified, 424 responded and were removed. The remaining 39,069 became the basis for a declaratory judgment claim under New York’s lost-and-found property statute.
The Amicus Brief That Stopped the Case
On May 29, New York attorney Ian R. Cohen filed a motion to appear as an amicus curiae, submitting a 26-page brief opposing the lawsuit. Cohen does not represent any party and has no financial interest in the outcome.
His main argument is that New York’s lost-and-found statute was written for tangible physical objects, not blockchain assets. He argues that scanning a public ledger with an algorithm does not make someone a “finder” under the law.
Cohen also pointed out that New York’s Abandoned Property Law was amended in 2022 to specifically cover unclaimed virtual currency. That law routes dormant crypto to the State Comptroller, not to private parties.
He further argued that OP_RETURN messages and a global press release do not meet constitutional standards for legal notice, particularly for deceased holders or non-English speakers.
“A wallet that has been dormant for ten years, whose private key is stored on a steel plate in a bank vault, is not abandoned property. It is securely held property,” Cohen wrote.
Wallets Are Starting to Move
Since the lawsuit gained public attention, several of the targeted wallets have made transactions. On June 6, a wallet dormant since June 2011 moved 47.26 BTC, worth around $2.88 million. On June 2, another wallet inactive since March 2011 moved 35.55 BTC.
Galaxy Research head Alex Thorn noted the activity on X, saying 2011-era coins named in the case are “awakening and moving onchain.”
The wallet list includes the “1Feex” address, which holds roughly 80,000 BTC and has been linked in public reporting to the 2011 Mt. Gox hack. Cohen’s brief flagged that a New York ownership declaration over those assets could conflict with ongoing Japanese civil rehabilitation proceedings and potential U.S. federal forfeiture interest.
The court’s stay means the case now moves toward a July 14 hearing with Cohen’s arguments formally on the table. The plaintiffs have until July 7 to file a response.
