Bitcoin (BTC) Dusting Campaign Targets Dormant Wallets in Legal Maneuver

Bitcoin Dusting Campaign Raises Legal Questions

An entity operating under the Salomon Brothers name has sparked intrigue and controversy within the cryptocurrency community by launching a large-scale Bitcoin (BTC) dusting campaign. The operation involved sending tiny amounts of BTC to thousands of dormant Bitcoin wallets, accompanied by messages embedded in the OP_RETURN field, according to Galaxy.

These messages, which appeared as legal notices, claimed that the wallets were abandoned or lost. The notifications urged wallet owners to prove their ownership by moving their coins or contacting the sender with documentation. Failure to respond within 90 days would result in the relinquishment of rights to the wallets, as stated in the messages.

Salomon Brothers’ Mysterious Client

The Salomon Brothers name invoked in this campaign is not linked to the historic Wall Street firm but rather to an obscure entity that has acquired the trademark. This entity claims to represent a client who has taken “constructive possession” of the wallets, a term defined by Cornell Law School as having legal possession of an object not in direct physical control.

Salomon Brothers’ client claims to act in the interest of network security, intending to protect Bitcoin from technological vulnerabilities. However, the motives remain unclear, with some speculating potential legal claims over unresponsive wallets under abandoned property laws.

Potential Legal Implications

The campaign’s legality is complex. Unclaimed property laws in the United States typically require property holders to perform due diligence to locate the owner before transferring assets to state custody. The use of OP_RETURN messages as a form of notice raises questions about their validity under these laws.

Interestingly, the campaign primarily targeted Pay-to-Public-Key-Hash (P2PKH) addresses, which are considered less vulnerable to quantum computing attacks than other address types. This choice has led some to question the stated goal of protecting the Bitcoin network.

Community Reaction

The Bitcoin community has responded with skepticism and concern. The scale of the campaign and the legal claims of “constructive possession” have raised alarms about the potential for future legal actions based on these notices. The situation remains fluid, with the crypto community closely monitoring developments as the 90-day deadlines approach.

As the dust settles, the true intentions of Salomon Brothers’ client remain a mystery. Whether this campaign represents a genuine attempt to secure the network or a strategic legal maneuver will likely depend on future legal interpretations and actions.

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