- Bitcoin Policy Institute moved to join a lawsuit over 3.7M dormant BTC before a key court hearing.
- The case could reshape self-custody rights if inactive Bitcoin is legally treated as abandoned property.
- Legal experts said ownership claims would not grant access without the Bitcoin private keys.
A legal battle over millions of dormant Bitcoins has entered a new stage after the Bitcoin Policy Institute asked a New York court for permission to join the case. The lawsuit seeks ownership of more than 3.7 million Bitcoin, including wallets widely believed to belong to Bitcoin creator Satoshi Nakamoto. The advocacy group argues that the case could have broader implications for the rights of people who hold their own Bitcoin.
The latest filing comes ahead of a July 14 court hearing that could determine how the case moves forward. According to the Bitcoin Policy Institute (BPI), the plaintiffs want the court to treat long-inactive Bitcoin as abandoned property. The group said such a ruling could set a legal precedent affecting millions of self-custodied Bitcoin.
BPI Challenges Core Legal Theory
Alex Thorn, head of research at Galaxy Digital, highlighted the latest filing in a series of posts on X, saying the Bitcoin Policy Institute is seeking to join the lawsuit as a defendant. He added that the group also plans to ask the court to dismiss the case.
According to Thorn, the institute holds Bitcoin in long-term self-custody and argues that the plaintiffs’ legal theory could one day be used against its own holdings. Explaining the group’s position, he wrote, “finding a public address is like finding someone’s account number… it doesn’t give you the coins.”
The Bitcoin Policy Institute also argued that leaving Bitcoin untouched for years does not mean it has been abandoned. The group said many investors intentionally keep their Bitcoin in long-term storage without moving it.
Lawsuit Targets 3.7 Million Bitcoin
Court filings show that the lawsuit was brought by a pseudonymous plaintiff known as Noah Doe, along with two Wyoming-based companies. They are seeking ownership of 39,069 dormant Bitcoin wallets that together hold about 3.7 million BTC. The wallets include roughly 1.09 million BTC that researchers have widely linked to Bitcoin’s creator, Satoshi Nakamoto.
The plaintiffs argue that the wallets should be treated as abandoned property under New York’s lost-and-found property law. Court documents say they tried to notify the wallet owners by sending messages through Bitcoin’s OP_RETURN feature and by publishing public notices.
Industry Opposition Builds
Opposition to the lawsuit is continuing to build. One defendant, identified in court records as John Doe 33, has already challenged the claims. The Digital Chamber and several cryptocurrency lawyers have also filed legal briefs asking the court to reject the case.
Legal experts say that even if the plaintiffs win, a court ruling would not give them access to the private keys needed to move the Bitcoin. Instead, they could receive a legal declaration of ownership without being able to control the funds.
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