Key Takeaways:
A pseudonymous Bitcoin holder has stepped forward to challenge a New York lawsuit seeking ownership of $234 billion in dormant coins, including wallets tied to Satoshi Nakamoto.
A defendant identifying as John Doe 33 filed a motion to dismiss a New York lawsuit seeking ownership of 39,069 dormant Bitcoin addresses, arguing that blockchain address strings are data — not legal entities subject to court jurisdiction. The filing challenges the suit brought in May by plaintiff Noah Doe and two Wyoming-based LLCs, ABC Company and XYZ Company, who claim the Bitcoin tied to the listed addresses constitutes abandoned property under New York lost-property law.
"This is a real holder with real standing choosing to fight, not a bystander," Alex Thorn, head of research at Galaxy Digital, said in an X post. The filing prevented what had been a "near-certain" default judgment and challenged jurisdictional and statutory defects in the plaintiffs' case, he added.
Blockchain data shows John Doe 33 controls a wallet holding 5,000 Bitcoin received in April 2014 that has remained untouched for more than 12 years, worth more than $300 million at current prices. The wallet is roughly 100 times the median defendant address in the case, Thorn said. The complaint lists 39,069 Bitcoin addresses including wallets widely associated with Satoshi Nakamoto and the Mt. Gox hacker, collectively holding an estimated 3.7 million Bitcoin worth about $234 billion, according to Sani, founder of Bitcoin analytics platform Timechain Index.
The ruling could determine whether New York's lost-property law applies to public blockchain data — a question that affects roughly 3.5 million Bitcoin worth about $215 billion that have been dormant for more than a decade, according to Bitbo data. Another 6.6 million coins worth around $406 billion have been dormant for over five years.
The legal argument
John Doe 33's motion argues that Bitcoin address strings are neither persons nor legal entities subject to the court's jurisdiction, and that a public Bitcoin address cannot be "found" under New York's lost-property law because it has always been publicly visible on the blockchain. The defendant said he is a "natural person and real human" with constitutionally protected property rights, distinguishing himself from the inanimate data strings listed in the complaint.
The filing follows an amicus brief submitted in late May by pro-Bitcoin attorney Ian Cohen, who argued that Article 7-B of New York's personal property law was designed for physical items physically found by a person. "Inactivity on a public ledger is not loss," Cohen said, adding that many holders may choose to trade very little while safely storing private keys.
On-chain movements weaken the plaintiffs' case
About 34,335 Bitcoin have moved from roughly 52 addresses named in the complaint, worth more than $2 billion at current prices, blockchain data shows. The transfers have undercut the argument that long inactivity alone constitutes abandonment or loss. Bitcoin wallets can remain unmoved for years for reasons including long-term custody, cold storage, lost keys, or a deliberate decision not to transact.
Regardless of how the court rules on ownership, it remains unclear how the plaintiffs could recover any Bitcoin without possessing the private keys needed to access the wallets. The next phase of the case will turn on whether the court allows John Doe 33 to participate anonymously and whether his motion to dismiss can halt the lawsuit at an early stage. A ruling on either issue could determine whether other potential holders have a safe path to appear in court without exposing their identities.
This article is for informational purposes only and does not constitute investment advice.
