Lawsuit Over Dormant Bitcoin Addresses, Including Suspected Satoshi Wallet, Enters New Phase

A lawsuit over ownership of dormant Bitcoin addresses, including wallets believed to belong to Bitcoin creator Satoshi Nakamoto, is entering a new phase after a digital-asset lawyer filed a sur-reply brief.

Alex Thorn, Galaxy Digital's head of research, wrote on X on July 11 that Ian Cohen, a lawyer specializing in digital assets who submitted an opinion in May rebutting the plaintiffs' claims, has now filed a sur-reply responding to the plaintiffs' rebuttal.

The case was filed by an anonymous plaintiff identified as Noah Doe and two Wyoming-based companies. The plaintiffs argue that long-inactive Bitcoin should be treated as ownerless property and that they should be granted legal ownership of those assets. The addresses in dispute are reported to include a wallet tied to Satoshi Nakamoto.

In the latest filing, Cohen reiterated his position that Bitcoin cannot be treated as abandoned property solely because it has remained unmoved for a long period.

He argued that New York abandoned-property law does not apply to self-custodied Bitcoin. A lengthy period without transactions, he said, should not be interpreted as evidence that the asset was forfeited. Bitcoin ownership belongs to the holder of the private keys, and knowing a public address alone does not mean someone has "found" the asset.

The lawsuit is also seen as a test of basic property-rights principles for digital assets. In a report, Galaxy Digital said dormancy does not amount to abandonment, noting that Bitcoin can remain inactive for many reasons, including long-term holding, inheritance and lost private keys.

Galaxy Digital added that even if the plaintiffs prevail, they would still be unable to move the Bitcoin unless they obtain the private keys. It also said a court ruling on ownership could set a precedent for future legal claims against exchanges or custodians.