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

Salomon Brothers has made a bold and controversial legal move by attempting to assert claims over dormant Bitcoin wallets using blockchain-based notices. The firm, historically a major player in traditional finance, is applying the "Doctrine of Abandonment"—a legal principle typically used in traditional property law—to digital assets. It is sending messages via Bitcoin’s OP_Return function, which allows for data embedding in transactions, to notify suspected owners of its intentions to claim wallets that have shown no activity for over 14 years [1].

Among the primary targets is the 1Feex wallet, which contains approximately 80,000 BTC and is linked to the now-defunct Mt. Gox exchange. The wallet’s historical significance and large balance make it a high-profile case in this legal experiment [2]. Salomon Brothers’ strategy appears to be rooted in the assumption that long-term inactivity equates to abandonment, a stance that is widely contested within the crypto community.

The firm has given recipients a 90-day window to respond, either by taking action to prove continued ownership—such as making a transaction or reactivating the account—or by challenging the claim [3]. Some wallet holders have already responded by reactivating their accounts, demonstrating the real-world impact of this initiative [4].

Salomon Brothers justifies the move by citing potential security risks. Dormant wallets, the firm argues, cannot be upgraded to newer encryption standards, leaving them vulnerable to exploitation by malicious actors. This could, in turn, threaten the broader network's integrity [5]. However, critics warn that the firm’s actions could set a dangerous precedent. Wallet inactivity does not necessarily imply abandonment; owners may be locked out, deceased, or simply choosing not to transact [6].

The initiative has reignited debates about the core principles of Bitcoin, particularly self-custody and the sovereignty of private keys. Some experts fear that this approach could erode trust in the system and open the door to more aggressive legal claims in the future, especially as technology such as quantum computing advances [7].

While the Doctrine of Abandonment is well-established in traditional legal frameworks, its application to Bitcoin introduces significant uncertainty. Unlike real estate or traditional assets, Bitcoin ownership is not documented in centralized registries and is instead verified through cryptographic keys. This makes it unclear how enforceable Salomon Brothers’ claims are and whether such blockchain-based notices hold legal weight [1].

Despite the controversy, Salomon Brothers has positioned itself as a mediator between legacy finance and digital assets. The move reflects the growing convergence of traditional legal structures and blockchain technology, and it may influence how dormant digital property is treated in the future [7].

Source:

[1] AInvest, [https://www.ainvest.com/news/bitcoin-news-today-salomon-brothers-claims-abandoned-btc-wallets-blockchain-notices-2508/](https://www.ainvest.com/news/bitcoin-news-today-salomon-brothers-claims-abandoned-btc-wallets-blockchain-notices-2508/)

[2] The, [https://m.economictimes.com/crypto-news-today-live-07-aug-2025/liveblog/123149180.cms](https://m.economictimes.com/crypto-news-today-live-07-aug-2025/liveblog/123149180.cms)

[3] WTRF, [https://www.wtrf.com/business/press-releases/accesswire/1057568/salomon-brothers-addressing-cryptos-wallet-problem](https://www.wtrf.com/business/press-releases/accesswire/1057568/salomon-brothers-addressing-cryptos-wallet-problem)

[4] Investing.com, [https://uk.investing.com/news/company-news/salomon-brothers-addresses-security-risks-of-abandoned-crypto-wallets-93CH-4206642](https://uk.investing.com/news/company-news/salomon-brothers-addresses-security-risks-of-abandoned-crypto-wallets-93CH-4206642)

[5] Bitcoin, [https://bitcoinworld.co.in/abandoned-btc-wallets-claim/](https://bitcoinworld.co.in/abandoned-btc-wallets-claim/)

[6] CoinDesk, [https://www.coindesk.com/tag/bitcoin-wallet](https://www.coindesk.com/tag/bitcoin-wallet)

[7] John, [https://johnlothiannews.com/trumps-attack-on-wind-solar-cuts-deeper-than-industry-expected/](https://johnlothiannews.com/trumps-attack-on-wind-solar-cuts-deeper-than-industry-expected/)