New York court paused lawsuit targeting Bitcoin wallets linked to Satoshi. Attorney argues dormant Bitcoin addresses remain owned through private keys. Court review could influence future cry
Galaxy Head of Research Alex Thorn has revealed a major development in the legal battle over Bitcoin believed to belong to Satoshi Nakamoto. According to Thorn, a New York court has stayed the lawsuit seeking ownership of more than 1 million BTC tied to addresses widely associated with Bitcoin’s creator.
The update affects a controversial case filed in March by plaintiffs identified as “Noah Doe” and two Wyoming-based entities. The lawsuit seeks legal title to 3.799 million BTC, valued at more than $200 billion, under New York’s lost-property statute.
A significant portion of the claim targets 21,744 addresses believed to belong to Satoshi Nakamoto. Those wallets hold roughly 1.09 million BTC and have remained inactive for years. The plaintiffs argue that these assets qualify as lost property and should therefore be transferred to them.
According to details shared by Thorn, the lawsuit has raised concerns across the cryptocurrency industry because a favorable ruling could create a pathway for future claims on dormant digital assets.
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The case encountered resistance on May 29 when attorney Ian R. Cohen submitted an amicus brief challenging the lawsuit’s legal foundation. Cohen argued that New York’s lost-property law does not apply to self-custodied Bitcoin. He also maintained that wallet inactivity does not amount to abandonment and that private key ownership remains the determining factor in controlling digital assets.
Furthermore, Cohen disputed the plaintiffs’ method of identifying supposedly lost Bitcoin. He pointed to blockchain activity showing that some addresses classified as abandoned have recorded spending activity. That evidence, he argued, weakens the claim that the assets were lost or abandoned. The filing emphasized that possession of a private key establishes control over Bitcoin. As a result, Cohen argued that dormant wallets cannot be treated as lost property simply because they have not moved funds for extended periods.
The dispute took another turn on June 4 when Justice Kathy King granted Cohen a hearing and stayed the entire case. The ruling temporarily freezes any inquest or default judgment while the court examines the arguments presented in the challenge. Consequently, the plaintiffs cannot obtain legal title to the disputed Bitcoin until the court reaches a decision on the issues raised.
Court records indicate that Noah Doe’s legal team opposed the stay. However, Cohen later submitted a rebuttal defending his position that the lawsuit lacks a valid legal basis. The outcome could extend beyond Bitcoin addresses linked to Satoshi Nakamoto. Legal observers note that the case may influence how courts handle dormant cryptocurrency holdings and ownership disputes in the future.
The latest court decision has halted efforts to secure legal ownership of Bitcoin linked to Satoshi Nakamoto. While the lawsuit remains active, the court’s decision to review key objections has introduced a significant hurdle for plaintiffs seeking control of dormant Bitcoin addresses.
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The post Satoshi Bitcoin Ownership Case Halted as Court Weighs Challenge to Claim appeared first on 36Crypto.
