The New York lawsuit seeking ownership of 39,069 dormant cryptocurrency wallets containing approximately 3.8 million Bitcoin has experienced a significant reduction after several addresses moved funds. According to Galaxy Research's head of research Alex Thorn, Noah Doe's legal team dropped 44 wallets after on-chain activity challenged the abandonment claims. The removed wallets held 21,443 BTC when the lawsuit started, but later moved 46,334 BTC on-chain and now hold about 3,097 BTC. As reported by Galaxy's Thorn, every single one had moved coins on-chain since the case was filed, demonstrating that dormant Bitcoin can remain untouched for years without being lost, especially when holders use cold storage.
The Digital Chamber, a blockchain trade group representing more than 250 members including exchanges, banks, and investment firms, has filed an amicus brief opposing the New York lawsuit. In a court filing submitted on Monday, the Digital Chamber argued that allowing dormant self-custodied Bitcoin wallets to be treated as abandoned property would create a 'pervasive cloud on title across self-custody wallets'. The trade association warned that the plaintiffs' legal theory could weaken long-established principles of digital property ownership and produce consequences extending beyond the cryptocurrency sector into traditional finance. The Digital Chamber has warned that Noah Doe is ineligible to be a legitimate 'finder' since he only discovered public wallet addresses and never acquired the private keys or authority over the Bitcoin.
The lawsuit seeks to declare that the listed wallets qualify as abandoned property under Article 7-B of New York's Personal Property Law. According to court filings, Noah Doe claims he discovered the wallets after identifying what he described as a security vulnerability that permanently prevented some owners from accessing their Bitcoin. The plaintiffs spent more than a year attempting to identify the owners before filing the case and later assigned ownership interests in most of the claimed wallets to two Wyoming-based companies. The disputed addresses collectively hold an estimated 3.7 million BTC valued at about $234 billion at current market prices, with the list also including several addresses associated with Bitcoin creator Satoshi Nakamoto. The plaintiffs claim they posted notices on the blockchain using Bitcoin's OP_RETURN function, directing wallet owners to an abandonment notice and providing them with 90 days to reply. After the notice period, approximately 2,900 wallets were deleted, including 424 that were activated, leaving 39,069 that they say were abandoned.
Legal opposition to the case has continued to expand with multiple parties filing amicus briefs and motions. Last week, a pseudonymous defendant identifying as 'John Doe 33' filed a motion asking the court to dismiss the lawsuit, arguing that Bitcoin addresses are data strings rather than legal entities and therefore cannot be sued. M&A attorney Ian R. Cohen has also sought permission to participate as amicus curiae, challenging the plaintiffs' interpretation of the state's lost-property law. Court proceedings are currently paused after New York Supreme Court Justice Kathy J. King stayed the case until oral arguments scheduled for July 14, preventing the plaintiffs from seeking a default judgment before the hearing. The defendants argue that Noah Doe is ineligible to be a legitimate 'finder' since he only discovered public wallet addresses and never acquired the private keys or authority over the Bitcoin. They contend that granting the relief sought would not quiet title but would 'disrupt entire industries and the expectations of every owner of digital assets'.
The lawsuit remains closely watched because many listed wallets are tied to early Bitcoin mining, with more than 21,000 Patoshi-pattern addresses believed by researchers to be linked to Bitcoin creator Satoshi Nakamoto. As reported by Galaxy Research, there is 'no evidence any of the 39K addresses are 'lost,' while the latest removals show clear evidence that some wallets were still controlled. The case has drawn formal opposition from attorney Ian R. Cohen, who challenged the lawsuit and argued that dormant self-custodied Bitcoin does not qualify as abandoned property under New York law. A court win would not hand the plaintiffs private keys but would only give them a legal declaration, which could create problems if any coins later reached a regulated exchange or custodian.
