“Lost” bitcoins – An unusual legal dispute is unfolding in New York that tests the boundaries of cryptocurrency ownership. Plaintiffs claim that 39,069 long-term inactive bitcoin addresses represent abandoned property. The problem is, without private keys, they may never access the bitcoins anyway.
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New York lawsuit targets inactive bitcoin wallets
A New York court is set to address a case that could open one of the most peculiar questions in cryptocurrency law: can long-term inactive bitcoins be considered abandoned property?
The lawsuit was filed on May 1, 2026 by a man operating under the name Noah Doe along with two Wyoming companies, ABC Company and XYZ Company. They are asking the court to recognize them as owners of 39,069 bitcoin addresses that they claim are long-term inactive and legally abandoned. They rely on New York rules for found property and claim they reported the addresses to the New York police.
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Addresses linked to Satoshi and Mt. Gox are also at stake
According to available information, the 901-page lawsuit is said to include an address beginning with “12c6D,” which is associated with Bitcoin creator Satoshi Nakamoto, as well as the address “1Feex,” which is linked to the Mt. Gox exchange hack. In total, these addresses are said to hold approximately 3.7 million BTC worth around $285 billion.
The plaintiffs argue that these wallets can be compared to abandoned bank accounts. However, this is problematic with Bitcoin. The cryptocurrency network doesn’t operate based on a court stamp, but on who has the private key.
Even a court victory could be purely symbolic
Experts point out that even if the court ruled in favor of the plaintiffs, it might not mean anything in practice. The Bitcoin network has no mechanism to “transfer” coins to a new owner without the private key. The only exception would be a situation where the bitcoins were moved to a regulated exchange or to a custodian whom the court could compel to act.
Another weakness of the lawsuit is the very assumption of abandonment. The fact that bitcoins haven’t moved in years doesn’t mean they don’t have an owner. They could belong to long-term holders, people who have lost access keys, or deceased owners.
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The dispute shows how difficult it is to apply old law to cryptocurrencies
The case also demonstrates how complex it is to apply traditional property law to decentralized technologies. With a regular account, there is a bank, state, or administrator who can intervene based on a decision. With bitcoin, however, no central authority exists.
According to data from Bitbo, approximately 3.5 million BTC are currently inactive for more than ten years, and 6.6 million BTC haven’t moved for more than five years. However, this alone doesn’t indicate whether these are lost coins, forgotten wallets, or intentional long-term holding.
Bitcoin remains property you can’t unlock without a key
The lawsuit may therefore be important mainly symbolically. The court may address the question of whether inactive cryptocurrencies can be legally designated as abandoned property. But it won’t change Bitcoin’s technical reality.
For ordinary investors, the case is a reminder of the basic rule of cryptocurrencies: those who don’t have the private key don’t have real access to their bitcoins. And if the key is lost, often not even a court can help.
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