New York Supreme Court Halts Proceedings in High-Stakes Noah Doe Bitcoin Lawsuit Valued at $234 Billion

New York State Supreme Court Halts Billion-Dollar Bitcoin Lawsuit Until July Hearing

New York, NY — In a significant development for the cryptocurrency world, the New York State Supreme Court has ordered a pause on all proceedings in the high-stakes Noah Doe lawsuit, which seeks ownership of Bitcoin wallets estimated to hold approximately 3.8 million BTC, valued at around $234 billion. The court’s decision, issued by Justice Kathy J. King, halts any further actions until a scheduled hearing on July 14.

The lawsuit, officially titled “ABC Company, XYZ Company, Noah Doe v. John Does 1-39,069,” revolves around claims of ownership over 39,069 dormant Bitcoin wallets. The plaintiffs argue that under New York’s lost-property laws, if original owners do not assert their rights within a specified timeframe, ownership can transfer to a finder. This legal principle is at the heart of their claim to acquire the long-inactive wallets on the blockchain.

Among the wallets in question are addresses linked to the notorious Mt. Gox hack, including the infamous “1Feex” address, as well as wallets believed to be associated with Bitcoin’s enigmatic creator, Satoshi Nakamoto, from the early days of mining.

The stay on proceedings follows a motion filed by Ian R. Cohen, a Bitcoin holder and attorney, who sought to participate in the case as amicus curiae. Cohen’s argument centers on the assertion that New York’s lost-property law is designed for tangible assets and cannot be applied to blockchain wallets. He contends that losing a private key does not equate to abandoning an asset; rather, it signifies a loss of access.

“A wallet that has not moved for 10 years is not abandoned property if the private key is sitting in a safe,” Cohen stated in his brief. “It is property being securely stored.” He further emphasized that even if the court were to recognize the plaintiffs’ ownership, they would still be unable to access the Bitcoin without the private keys.

As the cryptocurrency community watches closely, the upcoming hearing on July 14 will be pivotal in determining the future of these dormant wallets and the legal precedents that may arise from this landmark case. The outcome could have far-reaching implications for how digital assets are treated under existing property laws.

Stay tuned for updates as this story develops.