- Ripple CTO Emeritus David Schwartz questioned legal basis behind lawsuit.
- Plaintiff seeks ownership of 39,000 dormant Bitcoin wallets worth billions.
- Industry experts doubt courts can enforce control over Bitcoin.
Ripple CTO Emeritus David Schwartz has weighed in on a legal battle that seeks control of nearly $293 billion worth of dormant Bitcoin, raising doubts about whether the effort can succeed. The lawsuit, filed in New York by an individual using the pseudonym Noah Doe, targets more than 39,000 inactive Bitcoin wallets and has quickly become one of the most talked-about legal disputes in the cryptocurrency industry.
According to Schwartz, the case faces major legal obstacles because it attempts to apply traditional property laws to assets secured by a decentralized global network. His comments came as the lawsuit drew attention for both the scale of the Bitcoin involved and the unusual legal strategy behind the claim.
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Schwartz Questions Legal Basis Behind Ownership Bid
The lawsuit centers on Bitcoin wallets that have not recorded on-chain activity for at least five years. Court filings claim that Doe developed an algorithm capable of identifying wallets believed to have been abandoned by their owners.
After compiling the wallet data, the plaintiff reportedly transferred the information onto USB drives and submitted them to law enforcement authorities as lost property. The legal team then issued notices intended to determine whether the wallets remained under active ownership.
According to the filing, more than 400 wallet owners responded by moving their Bitcoin after receiving notice. However, over 39,000 wallets reportedly remained inactive, leading the plaintiffs to pursue legal ownership of the remaining holdings.
Schwartz strongly disagreed with the reasoning behind the case. According to him, the argument that a New York court can establish jurisdiction over globally distributed Bitcoin simply because information was submitted in the state lacks a solid legal foundation.
Industry Observers Remain Skeptical
The extraordinary size of the claim has fueled widespread discussion throughout the crypto sector, as the targeted wallets are estimated to contain approximately $293 billion worth of Bitcoin and may include coins linked to Bitcoin creator Satoshi Nakamoto. Schwartz also noted that even a favorable court ruling would not automatically result in control of the assets, arguing that the Bitcoin network itself would be highly unlikely to recognize ownership changes imposed through a court order.
Similar concerns have emerged from other industry participants, with Galaxy Research Head Alex Thorn questioning whether local lost-property laws can be applied to decentralized assets spread across a global blockchain network. As the case moves forward, attention remains focused on whether the plaintiffs can overcome the legal and technical hurdles surrounding the claim. Schwartz’s reaction reflects broader industry skepticism toward what many view as an unprecedented attempt to gain control of a massive dormant Bitcoin fortune.
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