TLDR
- Ping Fai Yuen alleges his estranged wife Fun Yung Li used household surveillance cameras to record his 24-word seed phrase and drain his hardware wallet of 2,323 Bitcoin in August 2023
- The cryptocurrency’s value has surged from approximately $60 million during the alleged theft to an estimated $172 million today
- Investigators tracked the stolen assets to 71 different blockchain wallets, all dormant since late December 2023
- While dismissing the primary conversion argument, UK High Court approved proceeding with alternative legal grounds
- The presiding judge, Justice Cotter, indicated the plaintiff has exceptionally strong evidence and advocated for expedited proceedings
Ping Fai Yuen has accused his estranged wife, Fun Yung Li, of orchestrating an elaborate scheme to steal his Bitcoin holdings. According to his allegations, she used the couple’s home security camera system to covertly record his 24-word recovery phrase for his Trezor hardware wallet. He maintains she subsequently exploited this information to drain 2,323 Bitcoin from his wallet without authorization in August 2023.
When the alleged theft occurred, the cryptocurrency cache was valued at approximately $60 million. With Bitcoin currently trading around $74,000 per coin, those same holdings now represent roughly $172 million in value.
Blockchain analysis reveals the misappropriated funds underwent multiple transfers before being distributed across 71 distinct wallet addresses. Court filings indicate these addresses have remained completely inactive since December 21, 2023.
According to Yuen’s testimony, his daughter provided advance warning that his wife intended to take the Bitcoin. Following this alert, he installed audio surveillance devices throughout their residence. He asserts these recordings captured Li discussing both the theft itself and strategies for transferring substantial amounts of money while avoiding detection by financial institutions and law enforcement.
Law enforcement officials arrested Li and confiscated multiple cold storage wallets and watches during a residence search. She was subsequently released on bail. Authorities have indicated no additional action will be taken unless new evidence emerges.
Legal Battle Over Crypto Property Rights
This litigation presents a fundamental question for English jurisprudence: does Bitcoin qualify as property under current legal frameworks?
Li’s legal team petitioned the court for dismissal, contending that Yuen’s primary cause of action relied on conversion—a common law doctrine in England traditionally limited to tangible property that cannot encompass digital currencies like Bitcoin.
Justice Cotter concurred that the conversion claim was inappropriate. Nevertheless, the judge determined the case merits a full trial based on alternative legal theories that could potentially enable Yuen to reclaim the Bitcoin if he substantiates his accusations.
In an unrelated September 2024 incident, a physical altercation occurred between Ping and Li. Yuen subsequently entered guilty pleas to assault occasioning actual bodily harm along with two counts of common assault.
Yuen has additionally informed the court of his suspicion that the 71 Bitcoin addresses have been subjected to a dusting attack. This technique involves transmitting minimal cryptocurrency amounts to wallets for tracking purposes, potentially enabling malicious actors to identify valuable targets for phishing campaigns and additional fraudulent schemes.
Judge: Evidence Is “Damning”
In November 2024, Yuen filed for an asset preservation injunction requesting the court freeze the cryptocurrency, formally recognize his ownership rights, and either restore the Bitcoin to him or compensate him with an equivalent cash payment.
Justice Cotter stated that Yuen possesses “a very high probability of success,” citing the audio recordings and the hardware discovered during the search of Li’s residence.
“The transcripts are damning,” Cotter observed, noting that Li provided no justification for the Bitcoin’s movement.
Justice Cotter further advocated for expedited trial proceedings, characterizing them as “necessary given the security threats to, and volatility of value of, the Bitcoin.”
