New York Judge Halts Lawsuit Claiming 39,000 Dormant Bitcoin Wallets Worth $285 Billion

Jun 6, 2026

A New York judge has halted a lawsuit seeking ownership of 39,069 dormant Bitcoin wallets holding ~3.8 million BTC worth $285 billion. Plaintiffs "Noah Doe" and two LLCs claim the wallets are abandoned property under state law. Attorney Ian R. Cohen has opposed the suit, arguing the law doesn't apply to digital assets. The case is weakened by recent activity, as several targeted wallets have moved funds after years of dormancy.

New York dormant Bitcoin lawsuit

▪New York Justice Kathy J. King temporarily halted a lawsuit seeking ownership of 39,069 dormant Bitcoin wallets.
▪The targeted wallets collectively hold approximately 3.8 million bitcoin, valued at around $285 billion.
▪The lawsuit was filed on March 11, 2026, by a plaintiff known as "Noah Doe" and two Wyoming-based LLCs.
▪The case was paused ahead of a July 14 hearing for the court to examine the legal basis of the claim.

Abandoned property legal theory

▪The plaintiffs' legal argument rests on New York Personal Property Law Article 7-B, the state's lost-property statute.
▪The lawsuit contends that wallet owners who failed to respond to on-chain notices effectively abandoned their property, allowing a "finder" to claim it.

Ian Cohen amicus opposition

▪Cohen's brief states that losing a private key constitutes an "involuntary deprivation of access," not a voluntary forfeiture qualifying as abandonment.
▪New York attorney Ian R. Cohen filed a motion to appear as an amicus curiae (friend of the court) to oppose the lawsuit.
▪Cohen also noted that some targeted wallets are linked to the Mt. Gox collapse, creating potential jurisdictional conflicts.
▪Cohen argues that New York's lost-property laws apply only to tangible, physical items, not to publicly visible blockchain addresses.

Great Bitcoin Dusting campaign

▪The notices gave owners a 90-day window to respond to prove ownership.
▪The plaintiffs notified wallet owners by broadcasting messages embedded in Bitcoin transactions using the OP_RETURN field.
▪This on-chain notification effort, conducted in June and July 2025, was dubbed the "Great Bitcoin Dusting" by Galaxy Research.

Recent wallet activity evidence

▪Another wallet named in the suit transferred 47.26 BTC on June 6, 2026, after nearly 14 years of inactivity.
▪Recent activity from several targeted wallets challenges the plaintiffs' claim that the assets were abandoned.
▪On June 2, 2026, a wallet dormant since 2011, identified as defendant #38215, moved 35.55 BTC.