New York Judge Stays Lawsuit Seeking Ownership of Nearly 40,000 Bitcoins

June 8 — A New York Supreme Court judge has temporarily halted all proceedings in a lawsuit over 39,069 dormant Bitcoin wallets, putting the case on hold to block a default judgment before a July 14 hearing. Judge Kathy J. King signed the "Order to Show Cause," which was officially added to the public court docket on June 5, per court records. Oral arguments are set for 10:30 a.m. on July 14 in New York’s 6th Judicial District. The order states that pending the hearing, "all further proceedings on the plaintiff’s declaratory judgment request in this matter are stayed, including any application for discovery or default judgment." The judge omitted the phrase "and for a final determination" from the standard template wording, framing the order as a temporary suspension of the case until the July 14 hearing rather than an ongoing stay leading to a final judgment. In a separate ruling issued the same day, King found a prior motion for injunctive relief to be moot, citing a "Revised Complaint" the plaintiff filed on May 1 plus another entry in the court’s docket.