A Bitcoin wallet identified as 1KV47 transferred 30 BTC worth approximately $1.88 million on July 5, marking its first outgoing transaction since receiving the coins in August 2011, according to blockchain data shared by Galaxy Research. The address is among 39,069 wallets named in a New York lost-property lawsuit filed by Noah Doe and two Wyoming-based companies seeking ownership of dormant Bitcoin holdings. The lawsuit targets addresses collectively holding an estimated 3.7 million BTC worth roughly $234 billion, including wallets widely associated with Bitcoin creator Satoshi Nakamoto, and argues that long-inactive holdings should be treated as lost property under New York state law.
Lawsuit Targets 3.7 Million BTC Across Dormant Addresses
The addresses named in the suit collectively hold an estimated 3.7 million BTC worth roughly $234 billion, according to Sani, founder of analytics platform Timechain Index. The listed wallets include addresses widely associated with Bitcoin creator Satoshi Nakamoto. The case argues that long-inactive holdings should be treated as lost property under New York state law, Cointelegraph reported. If successful, it could set a precedent for how inactive cryptocurrency holdings are classified across US jurisdictions.
Movements from addresses named in the lawsuit have accelerated sharply. In June, 31 dormant addresses moved 17,527 BTC, a significant increase from the five addresses that transferred 4,834 BTC in February, according to Alex Thorn, head of research at Galaxy Digital. The 30 BTC received in August 2011 were worth under $300 at the time, based on Bitcoin's trading price of roughly $10 per coin, and have appreciated by more than 6,000 times at current prices near $63,000.
Defendant John Doe 33 Files Motion to Dismiss on July 4
On July 4, a defendant identifying themselves as John Doe 33, who claims to control one of the dormant addresses, filed a motion to dismiss the lawsuit. The defendant argued that Bitcoin addresses are merely data strings and cannot be named as parties in litigation.
Edwin Mata, lawyer and CEO of tokenization platform Brickken, told Cointelegraph that a New York court can adjudicate rights in intangible property but does not have the authority to convert public addresses into found property simply because the plaintiff copied them to a hard drive. Mata added that under property law, abandonment generally requires intent to relinquish rights, and a dormant Bitcoin address proves none of that. Inactive wallets may represent long-term cold storage, coins with lost keys, or holders who simply choose not to transact. Without private keys needed to control the assets, the lawsuit's foundation remains weak, Mata said.
Dormant Wallet Movements Accelerate in June
The jump from five wallet movements in February to 31 in June suggests holders named in the suit are asserting on-chain control to demonstrate their coins are not abandoned. Each confirmed movement erodes the plaintiff's central argument that inactivity equals loss. If the pace continues, the lawsuit may face a shrinking pool of addresses whose owners have not visibly reclaimed their holdings before the case reaches a substantive hearing. The next procedural milestone is the court's response to the motion to dismiss filed by John Doe 33.
FAQ
What did the 1KV47 Bitcoin wallet do on July 5?
The 1KV47 wallet transferred 30 BTC worth approximately $1.88 million on July 5, marking its first outgoing transaction since receiving the coins in August 2011, according to blockchain data shared by Galaxy Research.
Why did defendant John Doe 33 file a motion to dismiss the lawsuit?
John Doe 33 filed a motion to dismiss on July 4, arguing that Bitcoin addresses are merely data strings and cannot be named as parties in litigation. Edwin Mata, lawyer and CEO of Brickken, stated that abandonment requires intent to relinquish rights, which a dormant Bitcoin address does not prove.
How many dormant Bitcoin addresses moved funds in June?
In June, 31 dormant addresses named in the lawsuit moved 17,527 BTC, a significant increase from the five addresses that transferred 4,834 BTC in February, according to Alex Thorn, head of research at Galaxy Digital.
