「Lost and Found」 or「Legal Loophole」? New York Lawsuit Over 39,000 Dormant Bitcoin Wallet

MAY 25 — A May 1 lawsuit filed in New York is asking a court to grant ownership of 39,069 long-dormant Bitcoin wallets, sparking critical legal questions about lost crypto assets and how property law applies to digital currency. Plaintiffs Noah Doe and two Wyoming limited liability companies — ABC Company and XYZ Company — argue the Bitcoin linked to these addresses counts as "abandoned property" under New York’s Abandoned Property Law, and the case has been reported to the New York Police Department. The wallet addresses include funds from early Bitcoin miners, plus those tied to Bitcoin’s enigmatic creator, Satoshi Nakamoto. But the lawsuit’s legal standing is shaky. Even if the court rules in the plaintiffs’ favor, it’s technically unenforceable because the Bitcoin network lacks any "keyless fund reallocation" mechanism. Analysts from research firm Castle Labs note the only exception would be if the coins were moved to a regulated custodian or exchange, where the court could compel that intermediary to take action. On the numbers front, there’s a major discrepancy: The founder of on-chain analytics platform Timechain Index estimates these addresses hold roughly 3.7 million Bitcoin (valued at around $285 billion), far more than the amount the plaintiff is claiming. The analyst also pointed out the plaintiff sent legal notices to addresses not aligned with actual wallet balances, a key structural flaw in their effort. Broader data shows 3.5 million Bitcoin have been dormant for over 10 years, and another 6.6 million have been inactive for more than five years.