New York Judge Stays Bitcoin Wallet Ownership Lawsuit, Sets July 14 Amicus Hearing

According to The Block, on June 5, a New York Supreme Court judge stayed all proceedings in a lawsuit seeking to claim ownership of 39,069 dormant bitcoin wallets, blocking any move toward default judgment. Justice Kathy J. King signed the order on June 4, halting "all further proceedings" including applications for default judgment pending a July 14 hearing at the New York County courthouse.

The stay followed a motion by Ian Cohen, an M&A attorney, seeking to appear as amicus curiae with a 26-page brief opposing the plaintiffs' theory. Cohen argues the state's lost-and-found statute was designed for tangible objects and cannot apply to blockchain addresses. He contends the targeted wallets were never abandoned but suffered involuntary loss of access due to security issues, and that a judicial declaration would be meaningless without private keys. Cohen also flagged jurisdictional conflicts, noting the 1Feex wallet is subject to ongoing civil rehabilitation proceedings in Japan and potential DOJ criminal forfeiture interest. The plaintiffs have until July 7 to file opposition papers.