Ripple’s David Schwartz Slams $286B Bitcoin Wallet Lawsuit Over Satoshi BTC Claims

Ripple CTO Emeritus David Schwartz has sharply criticized a controversial New York lawsuit seeking control over billions of dollars in dormant Bitcoin wallets, including addresses allegedly connected to Bitcoin creator Satoshi Nakamoto and the infamous Mt. Gox hack. The lawsuit, filed by Noah Doe alongside Wyoming-based entities ABC Company and XYZ Company, aims to claim ownership of 39,069 inactive Bitcoin wallets containing an estimated 3.7 million BTC worth roughly $286 billion.

The plaintiffs argue that the Bitcoin wallets qualify as abandoned property under New York law. According to the filing, the wallets contain a flaw that permanently prevents owners from accessing their funds, making the crypto assets similar to unclaimed bank accounts or lost property. The group also claims the wallets were reported to the New York Police Department, strengthening their legal position.

David Schwartz dismissed the lawsuit’s reasoning, particularly the argument that New York courts have jurisdiction because the “found property” is located within the state. Posting on X, the Ripple CTO Emeritus described the legal logic as “comically bad” and highlighted multiple flaws in the case. He stressed that simply discovering dormant Bitcoin wallets does not automatically grant ownership rights or legal jurisdiction.

Despite criticizing the lawsuit’s foundation, Schwartz warned that the case could still create serious complications for Bitcoin holders. He explained that if the plaintiffs somehow secure a favorable ruling, they may attempt to freeze funds transferred from the disputed wallets to U.S.-based crypto exchanges. Even a legally weak decision, if left unchallenged, could create procedural issues over time.

Schwartz further cautioned that delayed legal responses could potentially allow bad actors to exploit court rulings and seize cryptocurrency assets. The case has intensified discussions within the crypto community about Bitcoin ownership rights, dormant wallets, and the legal risks surrounding abandoned digital assets.