A significant development has emerged in the high-profile bitcoin lawsuit, valued at $293 billion, which has captured the attention of legal experts and cryptocurrency enthusiasts alike. A pseudonymous bitcoin holder, known as John Doe 33, has stepped forward as the first named defendant in this case. His recent motion to dismiss the lawsuit is the first direct challenge to the legal arguments made by Noah Doe and associated entities.
Background of the Lawsuit
The lawsuit was initiated on March 11, 2026, in the New York Supreme Court, seeking a declaratory judgment that would affirm ownership of approximately 3.8 million BTC spread across around 39,069 dormant bitcoin addresses. The plaintiffs, represented by the avatar Noah Doe alongside two Wyoming-based companies, ABC and XYZ, claim rights to these wallets after utilizing proprietary software to identify what they allege are abandoned bitcoin addresses.
They further assert that they reported these addresses to the NYPD as lost property, relying on New York’s Personal Property Law Article 7-B, which pertains to unclaimed property rights. Notably, the addresses listed include those linked to the infamous 2011 Mt. Gox hack and various other historically significant wallets.
Challenges to the Plaintiffs' Case
After appearing to be on a straightforward path toward a potential default judgment, the case hit a snag on June 5 when Justice Kathy J. King temporarily halted proceedings. This took place following the submission of an amicus curiae brief by New York attorney Ian R. Cohen, who raised concerns regarding the plaintiffs' interpretations of the law. Cohen contended that New York’s lost-and-found statutes do not apply to digital assets and questioned whether the plaintiffs properly served all involved wallet owners through OP_RETURN messages in blockchain transactions.
As a result, the court is currently considering multiple motions, including a request from the plaintiffs to either lift or limit the stay imposed on further proceedings.
A Shift in the Litigation Landscape
The litigation took a noteworthy turn when John Doe 33 filed his motion to dismiss on June 30, marking the first engagement by an actual bitcoin wallet holder within the lawsuit. This filing has substantial implications, especially because it coincided with information that a related wallet transferred 500 BTC on July 2. This transaction adds weight to the defense's argument that the bitcoins in question were not abandoned, quite the opposite.
Justice King is set to preside over a crucial hearing on July 14, 2026. The outcome may drastically influence the trajectory of the Noah Doe litigation, which has now become a focal point within the crypto community. The complexities of this case highlight the intersection between legal principles and the evolving world of digital assets.
