The legal battle centers on the assertion that long-inactive Bitcoin wallets can be legally classified as abandoned under New York law. Cohen, acting as amicus counsel, successfully petitioned for a stay earlier this month, arguing that self-custodied digital assets do not fall under the purview of state lost-property statutes. He maintains that inactivity does not equate to abandonment and that private keys remain outside the jurisdiction of the court.
Evidence surfaced by Galaxy Digital research head Alex Thorn further complicates the plaintiffs' position. Blockchain analysis confirms that dozens of the supposedly abandoned wallets have recorded outbound transactions, proving that the assets remain under the control of their owners. Specifically, Galaxy identified 52 addresses that moved over 34,000 BTC, with several transfers occurring even after the lawsuit was initiated.
Cohen warns that lifting the stay could facilitate a default judgment against anonymous addresses, effectively seizing billions in assets without genuine opposition. The case has drawn skepticism from industry figures like Ripple CTO Emeritus David Schwartz, who highlighted the jurisdictional absurdity of a single court asserting power over decentralized, pseudonymous assets. With a hearing set for July 14, the proceedings remain a critical test for the legal status of dormant cryptocurrency holdings.
Comments (0)
No comments yet. Be the first!