Salomon Brothers Says It Has Completed Process of Notifying ‘Abandoned’ Crypto Wallets.

August 7, 2025 – New York, NY — Investment firm Salomon Brothers announced today that it has completed a comprehensive notification process for what it terms “abandoned” cryptocurrency wallets—digital asset accounts that have shown no signs of activity or owner verification for more than five years.

The firm’s announcement comes after months of regulatory discussions, legal reviews, and coordination with blockchain forensics partners. The process is part of a broader initiative to clean up dormant digital assets held in custodial accounts and ensure compliance with state escheatment laws and federal financial transparency standards.

Defining ‘Abandoned’ Wallets

According to Salomon Brothers, wallets classified as “abandoned” met a strict set of criteria:

  • No user-initiated transactions for over five years

  • Failure to respond to repeated outreach attempts via email, SMS, and physical mail

  • No recent KYC (Know Your Customer) updates or re-verification activities

  • Dormant balances exceeding minimum escheatment thresholds set by state law

Many of these wallets were created during the 2017 and 2020 bull markets, and some hold substantial balances in assets like Bitcoin (BTC), Ethereum (ETH), and various altcoins.

Notification and Due Diligence

Salomon Brothers initiated a multi-phase outreach campaign beginning in Q1 2025, sending over 22,000 notifications to last-known contact points associated with dormant accounts. The firm also partnered with identity verification providers to cross-reference user records with public databases and updated credit agency files.

“We’ve made every reasonable effort to locate and notify affected wallet holders,” said Raymond Altman, Head of Digital Assets Compliance at Salomon Brothers. “This process was conducted with full transparency and in line with both consumer protection obligations and state regulations.”

Wallets that remain unclaimed after this process may now be subject to state escheatment laws, meaning their contents could be reported and transferred to government unclaimed property departments.

Legal and Regulatory Context

Under U.S. escheatment laws, financial institutions are often required to turn over unclaimed assets to the state after a certain period of inactivity—typically three to five years, depending on jurisdiction. The classification of digital assets like cryptocurrencies under these laws has been a grey area, but recent legal interpretations have extended traditional escheatment obligations to include digital wallets held in custodial platforms.

The Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN) have both encouraged increased transparency in the management of unclaimed digital assets, particularly as crypto adoption accelerates.

Reclaim Process Still Open

Salomon Brothers emphasized that affected wallet holders may still reclaim their assets by undergoing enhanced identity verification. The firm has set up a secure online portal and a dedicated customer service team to assist with reactivation and transfer requests.

“Our goal is not to seize or control these assets,” Altman clarified. “We want rightful owners to come forward and reclaim what’s theirs.”

To further incentivize wallet reactivation, the firm is offering to waive administrative fees for any successful claims made before the end of 2025.

Industry Implications

This move by Salomon Brothers may set a precedent for other custodial platforms and financial institutions managing dormant digital asset accounts. As crypto matures and regulatory clarity improves, firms are expected to adopt similar frameworks for abandoned wallet handling, escheatment compliance, and user engagement.

Analysts say this could also raise awareness among crypto holders about the importance of keeping account credentials and KYC information updated—particularly for long-term holders and heirs of deceased wallet owners.

Salomon Brothers’ completion of this process marks a significant milestone in the evolving intersection of traditional financial compliance and decentralized digital asset management. As the industry continues to mature, proactive measures like these are likely to become the norm, helping bring legitimacy and structure to the complex world of crypto custody.