Key Highlights
- The lawsuit targets 39,069 dormant Bitcoin wallets worth an estimated $234 billion at current market prices.
- The Digital Chamber argued blockchain inactivity alone cannot be used to claim ownership of dormant Bitcoin wallets.
- The filing says plaintiffs lack the private keys needed to access or control the Bitcoin held in the wallets.
- The trade group warned a favorable ruling could undermine self-custody and create uncertainty over digital asset ownership.
The Digital Chamber has filed a motion to dismiss a lawsuit seeking ownership of 39,069 dormant Bitcoin wallets worth an estimated $234 billion, arguing that the claim threatens property rights, undermines self-custody, and creates legal uncertainty across the cryptocurrency industry.
In a proposed amicus brief filed on July 6 in the New York Supreme Court, the blockchain industry’s largest U.S. trade association argued that inactivity alone cannot be treated as evidence that cryptocurrency has been abandoned. The brief was submitted in support of dismissing a lawsuit brought by plaintiffs identified as ABC Company, XYZ Company, and Noah Doe.
“The notion that private plaintiffs are entitled to ownership over 39,069 digital wallets they did not create and cannot access has no legal or equitable basis,” the filing said, adding that granting such relief “would have devastating effects.”
Lawsuit targets inactive Bitcoin wallets
The lawsuit was filed in May 2026 by pseudonymous plaintiff Noah Doe, together with two Wyoming-based companies, ABC Company and XYZ Company. The plaintiffs are seeking ownership of 39,069 dormant Bitcoin wallets containing approximately 3.8 million BTC, valued at about $280 billion when the complaint was filed.
The plaintiffs argue that the wallets remained inactive for at least five years and should therefore be treated as abandoned under New York’s lost-property laws.
According to the complaint, Noah Doe developed an algorithm to identify dormant Bitcoin wallet addresses using publicly available blockchain data. The plaintiffs say they identified the wallets through blockchain analysis, notified authorities, sent on-chain notices to the wallet addresses, and published public notices before asserting ownership claims.
Rather than alleging theft or attempting to gain access to the wallets’ private keys, they are asking the court to recognize them as the lawful owners under New York’s abandoned-property statutes.
After excluding wallets that later became active or were otherwise removed from the original list, the plaintiffs narrowed their claim to 39,069 wallets. They also acknowledge they do not possess the private keys required to access or transfer the Bitcoin held in those wallets. Instead, they are seeking a court declaration recognizing them as the lawful owners.
Alarming wider consequences
The Digital Chamber argued that accepting the plaintiffs’ legal theory would create a dangerous precedent for digital asset ownership.
The trade association said long-term inactivity is common among Bitcoin holders who deliberately use self-custody and cold storage to secure assets for years without making transactions. It argued that treating inactivity as abandonment would pressure users to move funds simply to demonstrate continued ownership, weakening one of Bitcoin’s core security practices.
“Granting Plaintiffs’ Request Would Jeopardize Consumers’ Ability to Rely on Self-Custody Wallets,” the filing said, arguing that prolonged inactivity often reflects deliberate security and investment strategies rather than abandonment.
The brief also warned that recognizing private claims over dormant wallets could create uncertainty over ownership, complicating lending, custody services, exchange deposits, and other transactions that depend on clear title.
The organization further argued that such a ruling could affect traditional financial markets by encouraging similar claims involving dormant financial assets, despite existing unclaimed property laws that transfer abandoned assets to state custody rather than private individuals.
Jurisdiction and property law challenged
Beyond the policy concerns, the Digital Chamber argued the lawsuit should be dismissed because the New York court lacks jurisdiction over the wallets.
The filing says the wallets are intangible property with no physical location in New York and that the plaintiffs failed to establish any connection between the unknown wallet owners and the state.
The association also contends that New York’s lost-property law does not apply because Bitcoin wallets are intangible, were never physically possessed by the plaintiffs, and there is no affirmative evidence that their owners intended to abandon them.
According to the brief, identifying publicly visible wallet addresses does not make Noah Doe a legal “finder” under New York law because he never obtained possession or control of the wallets or their private keys.
The court has not yet ruled on the plaintiffs’ ownership claims or the Digital Chamber’s request to dismiss the case. Its decision could help determine whether prolonged blockchain inactivity alone can establish ownership rights over dormant cryptocurrency wallets under New York law.
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