Digital Chamber Urges New York Court to Reject Claim Targeting "Dormant" Bitcoin Wallets

The Digital Chamber, a blockchain industry trade group, has asked a New York court to throw out a bid to claim ownership of tens of thousands of allegedly "dormant" Bitcoin addresses, warning the case could alter how self-custodied digital assets are treated under property law. In an amicus brief filed Monday, the Chamber opposed a lawsuit seeking a declaration from the New York Supreme Court that 39,069 inactive Bitcoin addresses are abandoned under Article 7‑B of New York's Personal Property Law, with ownership transferred to the plaintiffs. The addresses are said to hold about 3.7 million BTC — roughly $234 billion at current prices — according to Sani, founder of blockchain analytics firm Timechain Index. The list reportedly includes addresses linked to Satoshi Nakamoto. The Digital Chamber argued that labeling self-custodied wallets as abandoned based solely on inactivity would cast a "pervasive cloud on title across self‑custody wallets," undermining established concepts of digital property and potentially spilling into traditional financial markets. The Chamber says it represents more than 250 members, including exchanges, banks and investment firms. The lawsuit was filed in May by a plaintiff using the name Noah Doe, along with two Wyoming companies. Noah Doe claims he identified a security vulnerability that permanently prevented some owners from accessing their coins, and says he spent more than a year attempting to locate owners before assigning interests in most of the claimed wallets to the Wyoming entities. The filing marks the second amicus brief in the case. Additional resistance includes a motion by a pseudonymous defendant, "John Doe 33," seeking dismissal on the argument that Bitcoin addresses are data strings, not legal entities capable of being sued. M&A attorney Ian R. Cohen has also sought to participate as amicus curiae, disputing the plaintiffs' interpretation of New York's lost-property statute. On-chain activity has also complicated the abandonment claim. Galaxy Digital research head Alex Thorn said at least 31 of the addresses listed in the suit moved a combined 17,527 BTC in June, compared with five addresses that moved 4,834 BTC in February. Galaxy Research also pointed to the long-dormant address "1KV47," which transferred 30 BTC after being inactive since August 2011. New York Supreme Court Justice Kathy J. King has paused the case pending oral arguments set for July 14, preventing the plaintiffs from pursuing any default judgment ahead of that hearing. Even if the court ultimately sides with the plaintiffs, a ruling on legal ownership would not automatically confer control of the Bitcoin, which still requires the relevant private keys; the lawsuit does not establish possession of those keys. The dispute is being closely watched because it could set a significant precedent for how lost or dormant digital assets are handled under state law. Industry groups say a win for the plaintiffs could weaken self-custody rights and introduce legal uncertainty for private-key holders, while supporters of the lawsuit argue it could help recover property for rightful claimants.