Digital Chamber Pushes Back on Bid to Claim 39,069 "Dormant" Bitcoin Wallets in New York Case

Digital Chamber has entered a New York "lost property" lawsuit over 39,069 inactive Bitcoin addresses, urging the court not to treat dormant self-custody wallets as abandoned assets. In an amicus brief filed Monday—the second third-party brief in the case—the group warned that recognizing ownership claims based solely on inactivity would place a "pervasive cloud on title across selfcustody wallets." The suit was filed in late May by Noah Doe and two Wyoming-based companies. How any plaintiff could take control of the wallets without the private keys remains unclear. Sani, founder of Timechain Index, said the listed addresses collectively hold an estimated 3.7 million BTC, valued at roughly $234 billion, and include wallets linked to Satoshi Nakamoto. Galaxy Digital’s head of research, Alex Thorn, said at least 31 of the addresses moved 17,527 BTC in June. Why it matters: If courts accept a theory that inactive self-custody wallets can be claimed as lost property, it could inject broad uncertainty into digital asset ownership and custody practices. Market sentiment: Cautiously bearish, legal-driven. The focus is on legal uncertainty rather than near-term forced selling. Context: In March 2025, Ripple said the SEC would withdraw its appeal in the XRP case, sending XRP up about 10% (Axios). That dispute centered on securities law; the New York case hinges on whether dormant Bitcoin wallets can be treated as lost or abandoned property. Potential ripple effects: A ruling that allows the ownership theory to proceed could prompt custodians and self-custody users to reassess title risk across inactive wallets. A dismissal could reduce the legal overhang around dormant addresses. Opportunities and risks: - Opportunities: A court decision dismissing the case could be read as a reduced legal overhang for Bitcoin self-custody exposure. - Risks: If more listed dormant wallets move while the litigation continues, cutting event-driven leverage may help limit downside tied to legal and ownership uncertainty.