Bitcoin News Today: Salomon Brothers Uses Blockchain to Claim Dormant Bitcoin Wallets

Salomon Brothers, a division of Citigroup, has sparked controversy by issuing legal notices to dormant Bitcoin wallets through the blockchain’s OP_Return data fields. The firm’s strategy, backed by an anonymous investor, is based on the legal doctrine of abandonment, targeting wallets that have remained inactive for over 14 years. These notices, embedded in on-chain transactions, serve as formal claims to assert potential ownership and prompt wallet holders to respond within a 90-day window [1].

According to the firm, the initiative is a legitimate extension of traditional property law into the digital asset space. If no response is received, the assets may be deemed abandoned and transferred into a special fund controlled by the firm’s backer. The move has drawn sharp criticism from segments of the cryptocurrency community, who argue that it undermines the core principles of self-custody and immutability that define Bitcoin [2].

The use of OP_Return to deliver legal claims marks a novel intersection of blockchain and traditional law, raising questions about the enforceability of such notices. Some experts have questioned whether courts will recognize blockchain-based legal instruments as valid, given the pseudonymous and decentralized nature of the network [3]. Meanwhile, the initiative has prompted immediate reactions from some wallet holders, with on-chain data showing increased activity in response to the notices.

BitMEX Research has issued a warning to users, advising caution and urging them not to interact with websites associated with the campaign, which have been linked to potential phishing scams and fraudulent claims [4]. The firm has not confirmed the authenticity of these sites, further complicating the legitimacy of the broader effort.

This approach highlights a broader debate over the future of digital asset ownership and the application of legacy legal systems to decentralized technologies. Critics argue that the irreversible nature of Bitcoin transactions makes it difficult to legally reassign control through traditional means, challenging the viability of the strategy [5].

Sources:

[1] Salomon Brothers: Addressing Crypto's Wallet Problem (https://natlawreview.com/press-releases/salomon-brothers-addressing-cryptos-wallet-problem)

[2] Solomon Brothers Issues Claim Notice to 'Abandoned ... (https://www.ainvest.com/news/solomon-brothers-issues-claim-notice-abandoned-bitcoin-wallet-holders-2508/)

[3] Salomon Brothers' 'unethical' plan to seize $700 billion in ... (https://euroweeklynews.com/2025/08/07/salomon-brothers-unethical-plan-to-seize-700-billion-in-bitcoin/)

[4] Bitcoin News Today: Salomon Brothers Claims Abandoned ... (https://www.ainvest.com/news/bitcoin-news-today-salomon-brothers-claims-abandoned-btc-wallets-blockchain-notices-2508-93/)

[5] Salomon Brothers Issues Legal Notices to Dormant Bitcoin Wallets (https://coinmarketcap.com/community/articles/6895a9cbd018386da1137473/)