Salomon Brothers’ Controversial Move into Crypto Territory
In an unexpected move that has stirred the cryptocurrency world, investment bank Salomon Brothers has announced claims on dormant Bitcoin wallets using a feature embedded within the Bitcoin protocol — the OP_RETURN script. The bank justifies its action through the “doctrine of abandoned property,” a legal principle typically used in traditional finance, now controversially extended into the decentralized world of crypto.
What Is OP_RETURN and How Is It Being Used?
OP_RETURN is a mechanism in Bitcoin’s scripting language that allows users to embed arbitrary data into blockchain transactions. Salomon Brothers is leveraging this tool to broadcast legal notices to over a dozen Bitcoin addresses they believe have been abandoned — some inactive for more than 14 years. According to the bank, this effort aims to prevent malicious actors or rogue states from seizing dormant crypto assets.
The Legal Argument: Doctrine of Abandonment
Salomon Brothers claims that under common law, property that remains unclaimed and inactive for extended periods — typically 14 years — can be legally declared abandoned. The bank asserts that its actions are grounded in this principle and that they are taking proactive legal steps to secure and potentially redistribute the unclaimed wealth, including to users who have lost private keys. This represents a bold, unprecedented application of traditional law to decentralized digital assets.
Crypto Community Reacts with Skepticism and Alarm
The move has generated widespread concern within the crypto community. Critics argue this could open the door to legalized appropriation of crypto assets and challenge the very foundation of Bitcoin’s ethos: decentralized ownership and self-custody.
Some even speculate a link between Salomon Brothers and Craig Wright, the controversial figure who claims to be Bitcoin’s inventor, though no concrete evidence supports this.
Security Concerns and the Quantum Threat
Adding to the controversy, Naoris Protocol CEO David Carvalho emphasized that this action could be a wake-up call for the Bitcoin ecosystem. He warned that the $700 billion+ in dormant wallets is vulnerable to emerging threats, especially quantum computing, and that existing security proposals are far too slow and inadequate to meet the pace of such risks.
Wallet Owners Given 90 Days to Act
Salomon Brothers has given owners of the affected wallets 90 days to prove ownership by initiating a transaction or filling out a verification form on their website. Some users have already responded by moving their Bitcoin to new addresses, effectively proving that the wallets are not abandoned.
Legal Gray Area with Global Implications
The biggest question now is whether courts — especially in jurisdictions without precedent — will recognize this strategy as legitimate legal recovery or unlawful appropriation. Without judicial clarity, this sets a dangerous precedent, potentially inviting similar actions from other institutions or state actors looking to legitimize the takeover of idle crypto funds.
Conclusion: A Test Case That Could Redefine Crypto Ownership
Salomon Brothers’ OP_RETURN campaign marks a critical turning point in how traditional finance may try to interact with, and possibly regulate decentralized crypto systems. Whether this will become a landmark legal innovation or a failed overreach remains to be seen. For now, it sends a clear message: dormant wallets are no longer safe from the eyes of institutions.
