Defendant Moves to Dismiss $229B Lost Bitcoin Lawsuit in New York
A wallet owner is fighting back against a New York lawsuit that aims to claim ownership of 39,069 dormant Bitcoin wallets worth roughly $229 billion.
If you thought your old forgotten crypto wallet was safe, think again — at least one person is actively fighting in court to keep theirs. A defendant who holds one of 39,069 dormant Bitcoin wallets at the center of a massive New York lawsuit has filed a motion to dismiss the case, pushing back against an effort that could strip holders of their coins entirely.
The lawsuit itself is pretty wild in scope. It targets Bitcoin wallets collectively worth around $229 billion — yes, billion with a B — that are considered lost or inactive. The legal action seeks to essentially transfer ownership of those wallets away from their current holders, which is the kind of thing that would make any crypto investor sit up straight in their chair.
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The defendant's move to dismiss is a significant early development in the case. Filing to dismiss means they're arguing the lawsuit shouldn't even get to trial — whether because the court lacks jurisdiction, the claims don't hold up legally, or some other procedural ground. It's a standard defensive play, but in a case this large and this unusual, every courtroom move carries serious weight.
What makes this case so eyebrow-raising is the sheer scale of what's being claimed. Dormant wallets have long been a quirky corner of the Bitcoin universe — coins that haven't moved in years, sometimes tied to lost passwords, deceased owners, or simply forgotten investments from crypto's early days. The idea that a court could reassign ownership of that many wallets would set a precedent with enormous implications for how Bitcoin ownership is legally defined in the United States.
The outcome of this dismissal motion could determine whether the case moves forward at all, making it one of the more consequential crypto legal battles to watch right now. Continue reading at Cointelegraph.
