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New York Court Pauses Suit Seeking Title to 39,069 Dormant Bitcoin Wallets

A judge halted the case to consider a friend-of-the-court brief that challenges whether state abandoned-property law can reach self-custodied Bitcoin.

Overview

  • The New York County Supreme Court signed a stay that was filed publicly on June 5 and blocked any default-judgment efforts until a July 14 hearing will decide whether to admit Ian R. Cohen’s amicus brief.
  • Cohen’s proposed brief contends that Article 7-B was written for tangible found property and that algorithmic ledger scans and OP_RETURN on-chain notices do not make their author a lawful finder under New York law.
  • Several long-dormant addresses named in the complaint moved on-chain after the case drew attention, including transactions on June 2 and June 6 that demonstrate active private-key control and weaken the plaintiffs’ abandonment claim.
  • The plaintiffs say they used a proprietary algorithm to identify wallets, delivered USB lists to the NYPD’s 17th Precinct, and served OP_RETURN legal notices with a 90-day response window before suing for a declaratory judgment.
  • Independent analysts estimate the named addresses hold roughly 3.7–3.8 million BTC while the complaint values each wallet under $10, a gulf that raises provenance and cross-jurisdictional conflicts and could create off-chain legal leverage over exchanges and custodians if a court issues a title declaration.