Bitcoin News Today: Salomon Brothers Claims Abandoned BTC Wallets Using Blockchain Notices

Salomon Brothers, a division of Citigroup, has stirred controversy in the cryptocurrency space by attempting to assert claims over long-dormant Bitcoin wallets using blockchain-based legal notices. The firm has begun leveraging Bitcoin’s OP_Return function to post what it terms as legal warnings against wallets inactive for over 14 years, citing the “Doctrine of Abandonment” as a legal basis. This approach marks a first-of-its-kind effort to apply traditional property law to digital assets in a decentralized context, raising complex legal and ethical questions [1].

The initiative primarily targets wallets that show no transactional activity for more than a decade, with the 1Feex address—one of the largest single-holding wallets in Bitcoin’s history—among those receiving notices. The 1Feex address is believed to contain 80,000 BTC, worth several billion dollars. According to the firm, these wallets may be considered abandoned if no activity is observed for a prolonged period, thereby opening the door for reclamation under the firm’s proposed legal interpretation. Wallet owners have 90 days to respond to these notices; failure to act could result in the assets being deemed forfeited [1].

Salomon Brothers’ strategy has drawn sharp criticism from legal scholars and the crypto community. Critics argue that the concept of abandonment, traditionally applied to physical property, does not easily translate to digital assets, particularly given the irreversible nature of self-custody in blockchain systems. The use of OP_Return to deliver legal notices is a novel tactic, yet its enforceability remains uncertain. While the embedded data is publicly accessible, the absence of a traditional legal process—such as personal service of process—raises significant doubts about its legitimacy under established legal standards [1].

The move has already triggered reactions among some wallet holders, with reports indicating that some have moved their assets in response to the notices. This response highlights the real-world implications of Salomon Brothers’ initiative and the potential for broader legal challenges. It also underscores the vulnerability of dormant crypto funds, particularly those held in outdated or forgotten wallets. The incident serves as a warning to investors about the importance of securing access to their private keys and being aware of evolving legal approaches to digital asset ownership [1].

The broader crypto market is now grappling with the implications of this bold move. Analysts are watching closely to determine whether Salomon Brothers’ actions will set a precedent for other financial institutions or governments seeking to assert claims over abandoned digital assets. If successful, this strategy could reshape how legal doctrines apply in a decentralized financial environment, potentially opening new avenues for asset recovery, but also introducing risks of misuse [1].

The 90-day response period will be a critical test of the initiative’s legal viability and public reception. If no substantial legal challenges emerge, the firm may proceed with its claims. However, if courts or regulators intervene, the precedent could be limited or even invalidated. The outcome of this case is expected to have long-term implications for the legal framework surrounding digital assets, influencing future debates over ownership, abandonment, and the enforceability of legal claims on decentralized platforms [1].

Salomon Brothers’ move reflects a growing convergence between traditional finance and the crypto industry, with major institutions exploring new ways to integrate digital assets into existing legal and financial systems. While the initiative is controversial, it signals a broader trend of institutional players seeking to define and assert control over digital property in an unregulated or under-regulated space. The resolution of these claims will likely shape how other financial entities approach similar opportunities in the future [1].

Source: [1] Abandoned BTC Wallets: Salomon Brothers’ Bold Move Sparks Crypto Controversy (https://coinmarketcap.com/community/articles/6894add16f5f5e27bc004153/)