BlockBeats news: On May 25, a New York lawsuit filed on May 1 sought a court ruling asserting ownership over 39,069 long-dormant Bitcoin wallets, raising significant legal questions regarding lost crypto assets and property law.
Plaintiff Noah Doe and two Wyoming limited liability companies (ABC Company and XYZ Company) claim that the bitcoins associated with these addresses constitute legally recognized "abandoned" property and have been reported to the New York Police Department under New York’s unclaimed property laws. The lawsuit includes wallets belonging to early Bitcoin miners and even addresses linked to Bitcoin’s creator, Satoshi Nakamoto.
However, the legal basis for this lawsuit is questionable. Even if the court rules in favor of the plaintiff, it cannot be technically enforced, as the Bitcoin network has no mechanism to reallocate funds without the private key. Analysts at Castle Labs note that the only exception is if these coins are transferred to a regulated custodial institution or exchange, in which case the court could compel the intermediary to take action.
The lawsuit lists a total of 39,069 Bitcoin addresses, but the founder of the on-chain analytics platform Timechain Index estimates that these addresses hold approximately 3.7 million Bitcoins (valued at around $285 billion), far exceeding the amount claimed by the plaintiffs. Analysts also noted that the plaintiffs sent legal notices to address formats unrelated to their balances, a move that is structurally flawed. Data shows that there are currently 3.5 million Bitcoins that have been dormant for 10 years, and 6.6 million Bitcoins that have been dormant for more than five years.