Key facts
- A lawsuit targets 39,069 Bitcoin wallet addresses, including those linked to Satoshi Nakamoto.
- The case could impact approximately 3.799 million BTC, valued at around $238 billion.
- Attorney Ian R. Cohen is defending the dormant Bitcoin holdings.
- Cohen argues that self-custodied Bitcoin does not fall under New York's lost property law and that dormancy does not equate to abandonment.
- Cohen contends that New York courts lack jurisdiction over private keys.
- Recent activity in some targeted wallets has been cited as evidence against the abandonment claim.
A significant legal battle is unfolding over a substantial dormant Bitcoin stash, potentially worth around $238 billion, with attorney Ian R. Cohen actively defending the holdings against claims of abandonment. The lawsuit, brought by anonymous plaintiffs including Noah Doe, ABC Company, and XYZ Company, seeks ownership of 39,069 Bitcoin wallet addresses, some of which are linked to Bitcoin's pseudonymous creator, Satoshi Nakamoto.
Galaxy Digital's research head, Alex Thorn, noted the case's potential to affect approximately 3.799 million BTC. Cohen's recent filing serves as a strong rebuttal to attempts by the plaintiffs' attorney, David Lin, to lift a court-ordered stay. Cohen has previously asserted that New York's lost property laws do not apply to self-custodied Bitcoin, arguing that wallet dormancy does not constitute abandonment and that New York courts lack jurisdiction over private keys.
Justice Kathy King granted the stay on June 4, an action Cohen emphasized was the court's independent decision, not solely his request. Cohen also highlighted that the 'defendants' are pseudonymous wallet addresses, not individuals served with process, making a default judgment against them problematic. He argued that lifting the stay would allow plaintiffs to secure a default judgment impacting the property rights of tens of thousands of individuals globally without their ability to object.
Furthermore, Cohen challenged the factual basis of the lawsuit, pointing out that some targeted wallets have shown recent activity on the blockchain, indicating that the associated private keys are not lost and the premise of abandonment is flawed. Galaxy's researchers identified individuals who moved Bitcoin after being alerted to the lawsuit, raising further doubts about the claim that these wallets are inaccessible or abandoned.