Left abandoned for a long time, so it's mine?...Satoshi's 3.8 million BTC, at risk of seizure in New York lawsuit

▲ Satoshi Nakamoto, Bitcoin (BTC), lawsuit/AI generated image

A $240 billion worth of Bitcoin, including addresses linked to Bitcoin (BTC) creator Satoshi Nakamoto, has become embroiled in a legal seizure controversy. The U.S. cryptocurrency industry has put the brakes on a lawsuit seeking to recognize 3.8 million BTC as ‘abandoned property’.

According to crypto media outlet U.Today on July 7 (local time), the crypto industry lobbying group Digital Chamber submitted an expert opinion to the New York State Supreme Court. It demands the dismissal of a lawsuit seeking to classify 3.8 million BTC as ‘abandoned property’. The lawsuit targets 39,069 inactive cryptocurrency wallets, including addresses linked to Satoshi.

In court documents, an anonymous claimant using the pseudonym Noah Doe demanded ownership of the wallets based on New York State's 1958 Lost Property Law. The claimant sent court notices to the blockchain using the OP_RETURN transaction field. After receiving no response, they demanded the transfer of the Bitcoin.

The Digital Chamber countered that a long period of no transactions alone cannot be considered abandonment of property rights. It argued that not moving wallets for a long time is a common behavior among long-term Bitcoin holders. It warned that if the lawsuit is accepted, it could create permanent legal uncertainty regarding the ownership of cold wallet holders.

Blockchain movements also conflicted with the claimant's assertion of ‘dead wallets’. According to Galaxy Digital, 31 addresses included in the court list have become active again in the past month. Unknown owners have moved a total of 17,527 BTC. An actual holder, using the pseudonym John Doe 33, also participated in the lawsuit, claiming to be “a living person, not just a line of lifeless data.”

A New York State Supreme Court judge temporarily halted the legal proceedings to prevent the claimant from automatically winning in the absence of owners for the other approximately 39,000 wallets. The next hearing to address the Digital Chamber's objection is scheduled for July 14. The core of this legal dispute is whether $240 billion worth of long-unused Bitcoin can be handled under existing lost property laws.

[Article Key Summary]

-The Digital Chamber requested the New York State Supreme Court to dismiss the lawsuit seeking to recognize 3.8 million BTC as ‘abandoned property’.

-The value of the Bitcoin targeted by the lawsuit is approximately $240 billion and includes addresses linked to Satoshi Nakamoto.

-It was reported that a total of 17,527 BTC moved from 31 addresses on the court list in the past month.

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