Bitcoin Lawsuit Drops 44 Wallets After On-Chain Activity Shows Movement

Plaintiffs in a New York lawsuit seeking legal title to dormant Bitcoin wallets dropped 44 of the original 39,069 listed addresses after on-chain activity contradicted their abandonment claims, according to a July 8 thread by Alex Thorn, Head of Research at Galaxy. The lawsuit, filed by pseudonymous 'Noah Doe' and two Wyoming entities, asks the New York Supreme Court to treat long-dormant wallets as abandoned property under state law, targeting addresses holding roughly 3.7 million BTC including wallets linked to Bitcoin creator Satoshi Nakamoto. The complaint stated that wallets showing on-chain activity would be removed from the defendant list.

21,443 BTC Moved From Dropped Wallets

Thorn disclosed that the 44 removed addresses held 21,443 BTC at the time the case began. Those wallets subsequently moved 46,334 BTC on-chain and now hold approximately 3,097 BTC. The original claim targeted addresses holding roughly 3.7 million BTC, with holdings valued in the hundreds of billions of dollars at the time of filing. One address that had been dormant for nearly 15 years moved 30 BTC while named in the lawsuit.

Legal Challenges Argue Dormancy Does Not Equal Abandonment

Thorn wrote that there is "no evidence any of the 39K addresses are 'lost.'" Attorney Ian R. Cohen filed a formal challenge arguing that dormant self-custodied Bitcoin does not qualify as abandoned property under New York law. His filing came before a July 14 hearing tied to procedural issues in the case. The Digital Chamber submitted an amicus brief warning that the plaintiffs' legal theory could threaten self-custody rights for all digital asset holders. The court has stayed further action and limited the plaintiffs' ability to seek a default judgment ahead of the July 14 hearing.

Patoshi Addresses Remain in Defendant List

The defendant list includes more than 21,000 Patoshi-pattern addresses, which researchers associate with early mining by Satoshi Nakamoto. Galaxy's earlier report noted that even a court victory would not hand plaintiffs private keys—it would grant only a legal declaration, which could create complications if any of the affected coins later reached a regulated exchange or custodian.

FAQ

Why were 44 Bitcoin wallets removed from the New York lawsuit? The 44 wallets were removed because they showed on-chain activity after the lawsuit was filed, contradicting the plaintiffs' claim that the addresses were abandoned. The complaint itself stated that wallets showing on-chain activity would be removed from the defendant list.

What legal arguments challenge the abandonment claim? Attorney Ian R. Cohen filed a challenge arguing that dormant self-custodied Bitcoin does not qualify as abandoned property under New York law. The Digital Chamber submitted an amicus brief warning that the plaintiffs' legal theory could threaten self-custody rights for all digital asset holders.