New York Court Halts $235 Billion Lawsuit Over Dormant Bitcoin Wallets, Questioning Lost Property Law
A New York court paused a $235B lawsuit claiming 3.8M Bitcoin from dormant wallets, questioning if lost property law applies to digital assets.Summary
A New York state court temporarily halted a lawsuit seeking control of 39,069 dormant Bitcoin wallets holding about 3.8 million BTC (~$235 billion), after an objection argued the state's lost property law covers only tangible items. The plaintiffs, an anonymous entity and two firms, claimed ownership under that law, but the court agreed the statute does not apply to blockchain-based assets, pausing the case pending further review. The wallets may include funds from the 2014 Mt. Gox hack and possibly wallets linked to Bitcoin's creator, Satoshi Nakamoto, with recent on-chain activity detected. The case underscores the legal uncertainty of applying centuries-old property law to digital assets and could set a precedent for future cryptocurrency ownership disputes, prompting calls for legislative clarity.
(Source：Home - Bitcoinworld.co.in)