CryptoSlate
A New York lawsuit seeking to claim 3.799 million Bitcoin as lost property is collapsing under the weight of its own on-chain evidence. Since a pair of anonymous Wyoming LLCs filed the action under the pseudonym "Noah Doe," 52 of the 39,069 targeted addresses have transferred roughly 34,335 BTC — about $2.48 billion at current valuations. Galaxy Digital's review of blockchain activity shows 29 of those addresses moved 12,302 BTC just after they were officially served in the case, including coins widely attributed to Satoshi Nakamoto.
Why it matters
The plaintiffs' entire theory is that dormant Bitcoin addresses can be treated as abandoned property under New York law — a $10 valuation filed to fit the statute, while the underlying claim targets hundreds of billions in BTC. Pro-Bitcoin attorney Ian Cohen, who filed an amicus brief contesting the suit, argued the opposite: possession of a private key is legal ownership, and a dormant address is just a digital savings vehicle that hasn't been moved. On June 4, New York Supreme Court Justice Kathy King granted Cohen a hearing and a stay on the proceedings, freezing any path to an unopposed default judgment against the pseudonymous defendants.
Market impact
The live wallet activity does more than embarrass the plaintiffs' targeting algorithm — it falsifies the abandonment claim at the ledger level. Galaxy Digital's Alex Thorn warned that a default judgment could grant legal title to 3.799 million BTC, including suspected Satoshi coins, and trigger years of ownership litigation and overhang risk across the broader crypto market. The court's stay now keeps that outcome on hold while Cohen remains the sole adversarial check on the largest attempted property seizure in US history.
Frequently asked questions
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What is the 'Noah Doe' lawsuit about?
Two anonymous Wyoming LLCs filed a New York suit seeking to claim 39,069 inactive Bitcoin addresses as lost property, targeting 3.799 million BTC — including coins attributed to Satoshi Nakamoto.
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How much Bitcoin has actually moved from the targeted addresses?
Roughly 34,335 BTC across 52 of the targeted addresses has been transferred since the case was filed, worth about $2.48 billion at current valuations, per Galaxy Digital.
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What did the amicus brief argue?
Attorney Ian Cohen argued that New York's lost-property laws do not apply to self-custodied Bitcoin, that the state lacks jurisdiction over cryptographic keys, and that private-key control is legal ownership.
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What did the court decide?
On June 4, New York Supreme Court Justice Kathy King granted Cohen a hearing and issued a stay on the proceedings, preventing the plaintiffs from securing a default judgment.
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Why does this case matter for the broader crypto market?
Galaxy Digital's Alex Thorn warned a default judgment could grant legal title to 3.799 million BTC and trigger years of ownership disputes, legal costs, and market overhang — particularly over coins attributed to Satoshi.
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