New York judge delays ownership claims for 39,069 dormant Bitcoin wallets until July hearing

ME News reports that on June 8 (UTC+8), New York Supreme Court Judge Kathy J. King has ordered a stay of litigation seeking to claim ownership of nearly 40,000 dormant Bitcoin wallets under the Unclaimed Property Law. The case, brought by plaintiff Noah Doe and others, attempts to assert ownership over 39,069 long-inactive Bitcoin addresses under Article 7-B of New York’s Personal Property Law. The plaintiffs claim these wallets have been “abandoned” and have sent abandonment notices via on-chain OP_RETURN messages to the relevant addresses. The order signed by the judge on June 5 stays all proceedings related to the plaintiffs’ claim of ownership, including any requests for default judgment or damages assessment, until a hearing on July 14 regarding whether to accept third-party amicus briefs. Previously, attorney Ian R. Cohen submitted a detailed amicus brief opposing the plaintiffs’ claims, primarily arguing that: New York’s Unclaimed Property Law applies to tangible property, and the plaintiffs have never taken actual possession of these wallets; the addresses have always been publicly visible on the blockchain and were never lost; the plaintiffs do not hold the private keys and cannot exercise actual control over the assets even if granted a court judgment; and New York amended its Abandoned Property Law in 2022 to explicitly classify dormant virtual currency as property under the custody of the State Comptroller, not subject to private claims. As of now, the plaintiffs have not filed any opposition to Cohen’s brief, with the deadline for submission set for July 7. (Source: Foresight News)