Satoshi Lawsuit Hits Roadblock as Plaintiffs Drop 44 Defendants

A lawsuit filed in New York County Supreme Court over the ownership of dormant Bitcoin addresses has become more complicated after the plaintiffs dropped 44 defendants who moved funds after the case was filed. The July 7 voluntary discontinuance leaves 39,025 wallets in the case.

The lawsuit seeks to declare the plaintiffs as owners of wallets they claim were found, reported to police, and left unclaimed after a notice campaign. However, the removal of these defendants, who collectively held 21,443 BTC when the case was filed, cuts into the plaintiffs' framework that inactivity on a blockchain can support a court declaration that assets have been abandoned.

A person claiming ownership rights over assets swept into the case has also filed a verified answer and affirmative defenses. John Doe 33 argues that public Bitcoin addresses are not legal persons and cannot be sued as defendants, and challenges the notice process used by the plaintiffs.