Digital Chamber Seeks Dismissal of NY Suit Over 39,069 Bitcoin Wallets

Key Point

Digital Chamber filed an amicus brief opposing ownership claims in the New York lost-property lawsuit over 39,069 dormant Bitcoin addresses. The Monday filing is the second amicus brief in the case and argues that treating dormant wallets as abandoned property would create a “pervasive cloud on title across self-custody wallets.” The lawsuit was brought by Noah Doe and two Wyoming-based companies in late May, and it remains unclear how the plaintiffs could gain control without private keys. Sani, founder of Timechain Index, said the listed addresses hold an estimated 3.7 million BTC worth about $234 billion and include some addresses associated with Satoshi Nakamoto. Galaxy Digital head of research Alex Thorn said at least 31 listed addresses moved 17,527 BTC in June.

Why it matters: A legal theory that treats inactive self-custody wallets as claimable property could raise uncertainty around digital asset ownership.

Market Sentiment

Cautiously Bearish, Legal-driven.

Reason: Digital Chamber opposed claims to 39,069 dormant Bitcoin addresses, which points to legal uncertainty rather than immediate asset liquidation.

Similar Past Cases

In March 2025, Ripple said the SEC would withdraw its appeal in the XRP case, and XRP traded up 10% on the news. (Axios) The difference is that the Ripple case centered on securities law, while the New York case centers on lost-property treatment for dormant Bitcoin wallets.

Ripple Effect

A property-law challenge can spread through custody practices if courts accept a claim model for inactive wallets. If a court allows the ownership theory to proceed, then wallet custodians and self-custody users may reassess title risk. If the court dismisses the case, then the legal overhang around dormant wallets may ease.

Opportunities & Risks

Opportunities: When the court responds to the dismissal efforts, then a dismissal can be treated as a lower legal overhang signal for Bitcoin self-custody exposure.

Risks: If more listed dormant wallets move while the case continues, then reducing event-driven leverage can limit downside from legal and ownership uncertainty.