Charles Hoskinson Slams Wyoming LLC Dormant Bitcoin Lawsuit

TLDR

• Charles Hoskinson criticized a Wyoming LLC lawsuit seeking ownership of about 3.8 million dormant Bitcoin.
• The plaintiff claims an algorithm identified thousands of Bitcoin wallets that have been inactive for years.
• The lawsuit asks a New York court to treat the inactive wallets as abandoned property.
• Hoskinson argued that wallet inactivity should not be used as proof that Bitcoin has been abandoned.
• The case has raised concerns over how traditional property laws may apply to self-custodied crypto assets.

A Wyoming LLC has drawn a sharp response from Charles Hoskinson after asking a New York court to recognize its claim over about 3.8 million dormant Bitcoin.

Charles Hoskinson said the lawsuit amounted to an argument that long-term inactivity could strip owners of their crypto, summarizing the theory as, “If you keep money in your safe for too long, we are coming after it.” The Cardano founder also criticized the lawyers behind the case, arguing that such claims should not be treated as normal legal work.

The case, filed in New York Supreme Court, centers on a plaintiff using the name Noah Doe. According to the complaint, the plaintiff claims to have built an algorithm that identifies Bitcoin wallets that have not moved funds for at least five or six years.

Wyoming LLC Claims Thousands Of Wallets Are Abandoned

According to the lawsuit, the plaintiff flagged more than 42,000 wallets and then filed found-property reports with the New York Police Department. The complaint also says the plaintiff tried to alert possible wallet owners through press releases, public notices, website postings, and OP_RETURN messages placed on the Bitcoin blockchain.

After removing wallets that later showed activity, the plaintiff claims 39,069 wallets remain abandoned. The lawsuit asks the court to apply abandoned property law and grant ownership of those wallets to the plaintiff.

The complaint says the wallets hold about 3.8 million Bitcoin. Based on Bitcoin’s market price, the total value could reach hundreds of billions of dollars, although the lawsuit does not claim the plaintiff controls the private keys needed to move the coins.

Hoskinson Challenges The Core Legal Theory

Hoskinson’s criticism focuses on the idea that a quiet Bitcoin wallet can be treated like abandoned property. In his view, the lawsuit clashes with one of Bitcoin’s central ideas, which allows owners to hold assets without banks, brokers, or regular account activity.

Unlike bank accounts, Bitcoin wallets do not require maintenance checks or periodic use. A wallet holder with private keys can leave coins untouched for years while still retaining control.

The complaint does not say the Wyoming LLC or Noah Doe has access to any private keys. That detail matters because Bitcoin transactions require valid cryptographic signatures before coins can move.

A court could issue a judgment about legal ownership, but the Bitcoin network would not move coins without the required keys. For that reason, the case may face practical limits even if the plaintiff wins some form of legal recognition.

Dormant Bitcoin Case Raises Industry Concerns

The lawsuit has drawn attention because long-term cold storage remains a common Bitcoin security practice. Many holders move funds to offline wallets and leave them untouched to reduce hacking and custody risks.

Hoskinson’s reaction shows concern that courts could be asked to treat inactivity as proof of abandonment, even when owners may simply be protecting their assets. The Wyoming LLC case, as described in the complaint, now places that conflict before a New York court.

The post Charles Hoskinson Slams Wyoming LLC Dormant Bitcoin Lawsuit appeared first on CoinCentral.