NY Judge Halts "Noah Doe" Lawsuit Over 39,069 Bitcoin Wallets
A New York Supreme Court judge has effectively paused a controversial lawsuit that sought to claim legal ownership of 39,069 “dormant” Bitcoin wallets. Justice Kathy J. King issued an order staying all further proceedings, preventing the plaintiffs from pursuing a default judgment until at least the next scheduled hearing.
The Legal Standstill
Justice King’s order, signed June 4 and filed June 5, halts the case while the court considers a critical motion. The judge has scheduled an oral argument for July 14, 2026, to determine whether to admit an amicus curiae (“friend of the court”) brief filed by attorney Ian R. Cohen. By striking specific language from the order, the judge ensured the stay remains in place until that hearing, blocking any immediate path to victory for the plaintiffs.
Background: The "Noah Doe" Case
The lawsuit, ABC Company, XYZ Company, and Noah Doe v. John Does 1-39,069, is an unprecedented attempt to apply New York’s lost-and-found property law (Article 7-B) to digital assets.
- The Strategy: The plaintiffs used a proprietary algorithm to identify dormant wallets, reported them to the NYPD, and sent on-chain “abandonment notices” to the addresses.
- The Claim: They argued that because the owners did not respond to these notices, the wallets were “abandoned” and ownership should transfer to the “finder.”
- The Scope: The targeted wallets collectively hold millions of BTC, including addresses linked to early Bitcoin miners, Satoshi-era “Patoshi” patterns, and the 2011 Mt. Gox hack.
The Amicus Opposition
Attorney Ian R. Cohen, an M&A lawyer and Bitcoin holder, filed a motion to intervene with a 26-page brief arguing against the plaintiffs’ theory. His primary contentions include:
- Statutory Inapplicability: New York’s lost-and-found statute is designed for physical, tangible property that can be secured, not digital blockchain addresses.
- Misinterpretation of “Lost”: The brief argues that wallets are not “lost” just because they are dormant; many are securely held assets, and the inability to transact due to security issues is “involuntary deprivation of access,” not abandonment.
- Legislative Intent: Cohen notes that New York already has an Abandoned Property Law amended in 2022 specifically for virtual currency, which directs unclaimed assets to the state, not to private “finders.”
- Jurisdictional Conflicts: He warns that a court declaration could conflict with international legal proceedings, such as the civil rehabilitation of the Mt. Gox hack assets.
