New York Judge Freezes Bid to Claim US$234 Billion in Dormant Bitcoin Wallets

On 4 June, a New York Supreme Court judge paused a lawsuit seeking to claim ownership of 39,069 dormant Bitcoin wallets holding approximately 3.8 million BTC, valued at roughly US$234 billion. Justice Kathy J. King issued a stay, delaying a default judgment decision until a 14 July hearing.

The anonymous plaintiffs argue that New York's lost-and-found statute can transfer ownership of inactive wallets to a finder when original owners fail to reclaim them. Attorney Ian R. Cohen filed an amicus brief challenging the theory, contending the law applies only to tangible property and cannot extend to blockchain addresses, which are recorded on a public ledger. Cohen also cited a 2022 amendment to New York's Abandoned Property Law that already establishes a process for handling dormant virtual currency through the State Comptroller.