Bitcoin Policy Institute Moves to Block New York Bid to Claim "3.7M BTC" From Dormant Wallets

A New York lawsuit is attempting to assert ownership over 39,069 long-inactive Bitcoin addresses—and the Bitcoin Policy Institute (BPI) is stepping in to stop it. BPI, a nonpartisan think tank focused on Bitcoin policy, has filed a motion to intervene in a New York County Supreme Court case that could reshape how courts interpret ownership of Bitcoin held in self-custody. The complaint, filed in May 2026 by a pseudonymous plaintiff, "Noah Doe," together with two Wyoming entities, argues that Bitcoin left untouched for five to six years should be treated as abandoned property under New York Personal Property Law Article 7B. The suit estimates those dormant wallets collectively hold about 3.7 million BTC. At the time of filing, that was valued at roughly $237 billion to $293 billion. BPI's position: inactivity does not equal abandonment BPI argues that self-custodied Bitcoin does not become "abandoned" simply because it has not moved on-chain. The core premise of self-custody, the group says, is that holders control their own private keys and can act on their own timetable without needing to demonstrate ongoing activity. The Digital Chamber, a major blockchain advocacy organization, reinforced that view in an amicus brief filed on July 6. Its central warning: if a court accepts the theory that dormancy equals abandonment, it could cloud title and create legal exposure for virtually every self-custodied Bitcoin wallet. Pressure points in the plaintiff's theory The case has already narrowed. Some addresses originally cited in the complaint have shown on-chain movement since the lawsuit was filed, forcing the plaintiffs to trim their claims. That development weakens the abandonment argument, as Bitcoin has no protocol-level concept of expiration and no mechanism that transfers ownership due to inactivity. BPI filed its motion to intervene in early July 2026, citing the potential for a precedent that could affect property rights measured in the hundreds of billions of dollars. Why investors are watching For Bitcoin holders using self-custody, the case is a bellwether. A plaintiff win would not only target older, inactive wallets; it could materially change how Bitcoin ownership is treated under New York law and influence arguments in other jurisdictions. A ruling rejecting the abandoned-property theory, by contrast, would strengthen digital property rights and support the legal standing of long-term holding strategies—an area where US digital asset law has often lacked clarity. With industry groups moving to ensure the dispute is litigated publicly and aggressively, and with nearly 3.7 million BTC implicated, the New York proceeding is emerging as a key test case for the future of digital property rights.