One of the 39,069 dormant Bitcoin addresses targeted in a New York ownership lawsuit has transferred 30 BTC worth about $1.88 million after nearly 15 years of inactivity.
Summary
- A dormant Bitcoin wallet named in a New York ownership lawsuit has moved 30 BTC after nearly 15 years of inactivity.
- More dormant addresses linked to the case have become active as the legal dispute over 39,069 Bitcoin wallets continues.
- A defendant has asked the court to dismiss the lawsuit, arguing that Bitcoin addresses cannot be treated as legal entities.
A dormant Bitcoin wallet named in a New York lawsuit over abandoned cryptocurrency holdings has transferred 30 BTC worth about $1.88 million after remaining inactive for nearly 15 years.
According to blockchain data shared by Galaxy Research, Bitcoin address “1KV47” made its first outgoing transaction on Saturday since receiving 30 BTC in August 2011. The address is one of 39,069 wallets listed in an ongoing New York court case seeking ownership of dormant Bitcoin holdings under the state’s lost-property law.
The latest transfer comes as more addresses connected to the lawsuit have begun showing activity. Alex Thorn, Galaxy Digital’s head of research, said 31 addresses named in the case moved a combined 17,527 BTC during June, compared with five addresses that transferred 4,834 BTC in February.
The lawsuit, filed by “Noah Doe” and two Wyoming-based companies, asks a New York court to declare that the listed wallets qualify as abandoned property under Article 7-B of the state’s Personal Property Law.
The plaintiffs argue that a security vulnerability left certain wallet owners permanently unable to access their Bitcoin and say they spent more than a year attempting to identify the owners before filing the case.
Legal challenge continues ahead of court hearing
Court proceedings remain on hold after New York Supreme Court Justice Kathy J. King issued an order in June staying further action until oral arguments scheduled for July 14. The order prevents the plaintiffs from seeking a default judgment before the hearing while the court considers procedural issues raised in the case.
The list of disputed addresses includes wallets widely associated with Bitcoin creator Satoshi Nakamoto. According to Sani, founder of blockchain analytics platform Timechain Index, the 39,069 addresses collectively hold an estimated 3.7 million BTC valued at about $234 billion at current market prices.
The legal theory behind the lawsuit has also drawn opposition. On Friday, a defendant identifying themselves as “John Doe 33,” who claims to control one of the dormant addresses, filed a motion asking the court to dismiss the case. The filing argues that Bitcoin addresses are simply data strings rather than legal entities and therefore cannot be sued.
Separately, M&A attorney Ian R. Cohen has sought permission to participate as an amicus curiae, challenging the plaintiffs’ interpretation of New York’s lost-property law as it applies to self-custodied Bitcoin wallets. The case is expected to test whether long-inactive blockchain addresses can legally be treated as abandoned property under existing New York law.
