Key Takeaways:
Alex Thorn said 52 named wallets moved 34,335 BTC after filing, challenging abandonment claims. 12,302 BTC have been moved since they were served onchain.Galaxy Research tracked $2.48B in BTC movements, adding scrutiny to the plaintiffs’ theory. Nearly 200 BTC from a so-called abandoned 2012 wallet moved on June 19.Judge Kathy King will weigh the stay dispute at a July 14, 2026 hearing.Lin argued the stay was unnecessary and that defendants should be required to answer the amended complaint according to normal deadlines. He maintained that the proposed amicus had no standing to seek such broad relief and asserted that the case should continue while the court considers whether to allow Cohen’s participation.
According to Lin, no defendant has appeared, retained counsel, or otherwise participated in the litigation, and plaintiffs contend proceedings should move forward without further delay.
Cohen Pushes BackCohen responded June 19 with an 11-page affirmation urging the court to keep the stay in place.
He argued that lifting the stay would effectively restart the path toward a default judgment involving tens of thousands of wallet holders who allegedly have no meaningful notice of the lawsuit and are unlikely to appear in court.
“The stay is the Court’s order, not mine,” Cohen wrote, rejecting claims that the stay stemmed solely from a request by a non-party. Cohen further argued that plaintiffs failed to demonstrate any material change in circumstances that would justify overturning the court’s prior decision.
Focus Shifts to Onchain Activity Galaxy Research Flags Billions in Bitcoin MovementGalaxy Research’s head of firmwide research, Alex Thorn, revealed that dozens of addresses named in the lawsuit have moved funds since the case began.
The data could become an important factor as the court evaluates whether inactivity alone is sufficient evidence of abandonment.
Cohen also renewed concerns regarding service of process.
He described the method as a “broadcast into a void,” arguing that many targeted wallet holders would have little practical chance of discovering the notices.
The filing also questions whether pseudonymous plaintiffs should continue operating under names such as Noah Doe, ABC Company and XYZ Company given the scale of the assets involved.
What Comes NextThe dispute now heads toward a scheduled July 14 hearing, where the court is expected to consider Cohen’s request for amicus participation and broader issues surrounding the stay.
