A leading crypto trade group has stepped into a New York court battle over tens of thousands of inactive Bitcoin addresses, warning that a ruling in the plaintiffs’ favor could cast doubt over the ownership of self-custody wallets far beyond the ones named in the suit.
The Digital Chamber filed an amicus brief Monday opposing a lawsuit brought in late May by one Noah Doe and two Wyoming-based companies. The case targets 39,069 dormant Bitcoin addresses holding an estimated 3.7 million BTC, currently valued at around $234 billion.
Among the addresses listed in the complaint are some associated with Satoshi Nakamoto, according to Sani, founder of analytics platform Timechain Index.
The trade group’s filing is the second amicus brief submitted in the case. It argues that ruling for the plaintiffs would undermine the “foundational principles of digital property ownership, with negative ripple effects reaching the traditional finance industry,” and warned that classifying inactive wallets as abandoned property would create a “pervasive cloud on title across self-custody wallets.”
The lawsuit is shaping up as a test of whether dormant crypto holdings can be treated as lost property under New York law, a question with potentially sweeping implications for anyone who holds crypto in self-custody.
Some of the wallets named in the case have started showing signs of life. Galaxy Digital head of research Alex Thorn reported that at least 31 of the listed addresses moved 17,527 Bitcoin in June alone, compared to five addresses that transferred 4,834 BTC back in February.
The Digital Chamber has also been ramping up pressure on Congress to pass the Clarity Act, launching a website this week where supporters can contact their lawmakers directly and urge a yes vote. The firm’s Chief Executive Officer (CEO) Cody Carbone said, “Congress needs to know that Americans expect them to act on Clarity”. “When we talk with legislators, we know they want to hear from their constituents. Whether builders or consumers, the voice of the people is clear about the need for clear rules of the road.”
The Clarity Act cleared the House last year but has been stuck in the Senate, first over disagreements around stablecoin rewards and more recently over ethics and DeFi-related concerns. The Digital Chamber cited a May survey by Security.Org of 992 US adults estimating that more than 70 million Americans own crypto.
