Key facts
- The Digital Chamber filed an amicus brief in a New York lawsuit concerning 39,069 dormant Bitcoin wallets.
- The trade association argues that granting ownership of these wallets to plaintiffs would endanger self-custodial property rights.
- The lawsuit seeks ownership of Bitcoin addresses estimated to hold $234 billion worth of BTC.
- Some of the dormant wallets have recently shown activity, with over 17,500 BTC moved in June.
- The Digital Chamber represents over 250 members, including crypto exchanges and investment firms.
The Digital Chamber, a blockchain trade association, has filed an amicus brief in a New York lawsuit that seeks ownership of 39,069 dormant Bitcoin wallets. The association argues that ruling in favor of the plaintiffs would establish a dangerous precedent for self-custodial wallets and undermine digital property ownership principles, potentially impacting the traditional finance industry.
The lawsuit, initiated by "Noah Doe" and two Wyoming-based companies, targets Bitcoin addresses estimated to hold approximately 3.7 million BTC, valued at around $234 billion. Some of these addresses are reportedly linked to Bitcoin creator Satoshi Nakamoto.
Recent activity has been observed in some of the targeted wallets. According to Alex Thorn, head of research at Galaxy Digital, at least 31 of the listed addresses moved a total of 17,527 Bitcoin in June, an increase from earlier in the year. One address, "1KV47," transferred 30 BTC on Saturday, its first movement in nearly 15 years.
The Digital Chamber, which represents over 250 members including crypto exchanges and investment firms, contends that the lawsuit's premise would create a "pervasive cloud on title across self-custody wallets." Regardless of the lawsuit's outcome, it remains unclear how the plaintiffs could access the assets without possessing the private keys to the wallets. A pseudonymous defendant has already filed a motion to dismiss, asserting control over one of the wallets in question.