A lawsuit filed this week seeks to claim ownership of 3.8 million dormant Bitcoin — roughly 2% of all coins that will ever exist. The legal action, whose plaintiffs haven’t been named publicly, targets holders of long-idle wallets. Charles Hoskinson, the Cardano founder, ripped the case on social media, calling the legal theory behind it “absurd and dangerous for self-custody rights” and referring to the lawsuit itself as “Scum of Earth.”
The dormant Bitcoin claim
Details of the complaint remain sealed, but the core demand is clear: 3.8 million BTC that haven’t moved in years should belong to the plaintiffs. That stash, worth hundreds of billions at current prices, includes coins mined in the early days of the network. The lawsuit doesn’t specify how the plaintiffs say they’re connected to the funds — only that they have a right to them.
For context, that amount of Bitcoin is more than double the holdings of any single public company. If a court were to grant ownership, it would be the largest forced transfer of crypto in history.
Hoskinson’s response
“This isn’t just a frivolous case — it’s a direct attack on the whole idea of self-custody,” Hoskinson wrote. He argued that if the legal theory holds, anyone with a claim — no matter how tenuous — could sue to seize dormant coins. “That destroys the basic promise of Bitcoin: you hold the keys, you own the coins.”
His comments weren’t subtle. He called the lawsuit “Scum of Earth” and warned that even if the case fails, the attempt itself could spook long-term holders who fear their wallets might be targeted next.
Why self-custody matters
The lawsuit lands at a time when regulators worldwide are wrestling with how to treat crypto ownership. If a court recognizes a legal pathway to claim dormant coins, it would effectively give governments and private plaintiffs a tool to challenge any wallet that’s been quiet for years. Hoskinson’s point: that’s the opposite of what Bitcoin was built for.
“Self-custody isn’t a feature, it’s the whole point,” he said. The case could end up in appeals regardless of the initial ruling, drawing out the fight for years.
What comes next
The defendants — the holders of those 3.8 million BTC — haven’t responded publicly, likely because they’re anonymous or unidentified. The court will need to decide if the plaintiffs have standing to even bring the claim. A hearing hasn’t been scheduled yet, but legal observers expect a motion to dismiss within weeks. For now, the dormant coins sit where they’ve been, and the crypto world watches a case that challenges the bedrock of ownership in the space.
