Digital Chamber Fights $240 Billion Bitcoin Seizure in NY Court

The Digital Chamber, an advocacy group for the crypto industry, has intervened in a New York State Supreme Court case to protest a lawsuit seeking to seize 3.8 million BTC, valued at $240 billion.

The plaintiff, identified as Noah Doe, claims that inactive wallets can be considered 'abandoned property' under New York's 1958 lost-property law. The court list includes addresses linked to Bitcoin creator Satoshi Nakamoto.

The Digital Chamber argues in its amicus brief that old legal norms are inapplicable to blockchain assets and points to three key factors: the absence of transactions from wallets does not constitute a waiver of property rights, granting the lawsuit would create permanent uncertainty for cold-wallet holders, and 'items found on the street' laws cannot regulate decentralized digital addresses.

The court has temporarily stayed all proceedings in the case due to the plaintiff's lack of response from the other 39,000 wallet owners. A next hearing is scheduled for July 14, 2026.