New York Court Schedules July Hearing in $226 Billion Bitcoin Wallet Ownership Lawsuit

A New York court has scheduled a July hearing in a high-profile Bitcoin lawsuit seeking ownership rights over thousands of dormant BTC wallets, including some addresses allegedly connected to Bitcoin creator Satoshi Nakamoto.

According to court documents, the lawsuit was filed by Noah Doe along with Wyoming-based entities ABC Company and XYZ Company. The plaintiffs are attempting to claim ownership of 39,069 inactive Bitcoin wallets that collectively hold an estimated 3.7 million BTC. While the complaint valued these holdings at approximately $286 billion when the lawsuit was filed, the current market value is estimated at around $226 billion.

The plaintiffs argue that the dormant Bitcoin wallets should be classified as abandoned property under New York law. They claim the original owners have permanently lost access to the funds, making the assets effectively unused and unclaimed. The lawsuit further contends that these Bitcoin addresses have been reported to the New York Police Department and should be treated similarly to lost or abandoned property.

Notably, the case includes Bitcoin wallets believed to be associated with Satoshi Nakamoto, as well as the well-known “1Feex” wallet linked to funds stolen during the Mt. Gox hack. These connections have drawn significant attention from the cryptocurrency community and legal experts.

Galaxy Digital’s Head of Research, Alex Thorn, revealed that the New York Supreme Court in Manhattan has set a hearing for July 14 at 10:30 a.m. before Justice Kathy J. King. The court order also requires parties to explain why attorney Ian R. Cohen should not be allowed to participate as amicus curiae and submit a brief opposing the plaintiffs’ claims.

Additionally, the court established June 18 as the deadline for serving motion papers and July 7 for filing opposition responses. Proceedings related to the plaintiffs’ declaratory judgment request have been temporarily stayed pending the outcome of the upcoming hearing.

The lawsuit has already faced criticism from Ripple CTO Emeritus David Schwartz, who questioned the legal foundation of the case. Schwartz argued that the plaintiffs’ claim of New York jurisdiction over dormant Bitcoin wallets lacks merit and described the legal theory behind the lawsuit as fundamentally flawed. His comments highlight the growing debate surrounding digital asset ownership, abandoned cryptocurrency holdings, and the limits of court jurisdiction in blockchain-related disputes.

As the July hearing approaches, the Bitcoin lawsuit is expected to attract widespread attention from investors, legal professionals, and the broader cryptocurrency industry due to its potential implications for dormant BTC holdings and digital asset ownership rights.