On Friday, September 4, 2026, TheStreet reported that a Bitcoin address, dormant since 2011, became active and transferred approximately $3.09 million in BTC. This movement is significant as it involves a wallet implicated in a New York ownership lawsuit.
The transfer of 40 BTC occurred in block 965,330 on September 3, 2026, according to blockchain analytics firm Galaxy Research. The coins were originally received on November 5, 2011, when Bitcoin’s price was around $3, resulting in an estimated unrealized gain of 2,571,899%.
The address in question is linked to a lawsuit filed in New York County Supreme Court (Index No. 153119/2026) by plaintiffs identified as “Noah Doe” and two Wyoming LLCs. These plaintiffs are seeking legal title to 39,069 dormant Bitcoin addresses, which collectively hold an estimated 3.7 to 3.8 million BTC, valued at approximately $293 billion at the time of the lawsuit’s filing in March 2026.
The plaintiffs are basing their claim on New York’s Article 7-B lost-property law, asserting that the wallets have been abandoned. However, the recent transfer complicates this argument, as it demonstrates that the owner still retains control of the private keys.
This is not the first instance of such a complication; Galaxy’s Alex Thorn noted in July 2026 that 44 other addresses involved in the case had become active after the lawsuit began.
Critics, including attorney Ian Cohen and the Digital Chamber, contend that mere dormancy does not equate to abandonment. Cohen argued in court filings that accepting the plaintiffs’ theory could lead to the exploitation of long-dormant Bitcoin wallets by a “private industry of ‘Bitcoin finders’ operating under color of lost property law.”
A New York judge has since placed the proceedings on hold, and no Bitcoin has been awarded to the plaintiffs.
Source: TheStreet
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