TLDR
- Ping Fai Yuen alleges his estranged spouse Fun Yung Li illegally accessed 2,323 Bitcoin from his Trezor wallet in August 2023 by recording his seed phrase via household security cameras
- The cryptocurrency’s value has surged from approximately $60 million during the alleged theft to roughly $172 million today
- Blockchain records show the assets were distributed across 71 different addresses with no movement detected since December 21, 2023
- While dismissing the primary conversion argument, a UK High Court judge permitted the lawsuit to continue under different legal grounds
- The presiding judge, Justice Cotter, indicated the plaintiff has “a very high probability of success” and advocated for expedited proceedings
Ping Fai Yuen has accused his estranged spouse, Fun Yung Li, of covertly capturing the 24-word seed phrase for his Trezor hardware wallet through their home’s surveillance camera system. According to his allegations, she subsequently utilized this information to unauthorized transfer 2,323 Bitcoin in August 2023.
When the alleged theft occurred, the Bitcoin held a value approaching $60 million. With current market rates hovering around $74,000 per coin, the total value has escalated to approximately $172 million.
Blockchain analysis reveals the disputed cryptocurrency moved through multiple transactions before settling into 71 distinct wallet addresses. Court filings indicate these addresses have remained dormant with zero transaction activity since December 21, 2023.
According to Yuen’s testimony, his daughter alerted him to his wife’s alleged scheme to misappropriate the Bitcoin. Following this warning, he deployed audio surveillance devices throughout their residence. He maintains these recordings document his wife discussing the theft and strategizing methods to transfer substantial amounts of money while avoiding detection by financial institutions and law enforcement.
Law enforcement officials apprehended Li and confiscated multiple cold storage wallets and watches during a property search. She was subsequently released under bail conditions. Authorities have indicated no additional action will be taken unless new evidence emerges.
Legal Battle Over Crypto Property Rights
This lawsuit presents a fundamental legal challenge: can cryptocurrency be legally recognized as property under current English law?
Li’s legal representatives petitioned the court for dismissal. They contended that Yuen’s primary claim relied on conversion—a common law doctrine in England historically limited to tangible property that cannot encompass digital assets such as Bitcoin.
Justice Cotter concurred that the conversion claim was legally insufficient. Nevertheless, the judge determined the case merited proceeding to trial based on alternative legal theories that could potentially enable Yuen to reclaim the Bitcoin if he substantiates his accusations.
In an unrelated episode in September 2024, a physical altercation occurred between Ping and Li. Yuen subsequently entered guilty pleas to charges of assault occasioning actual bodily harm and 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 surveillance purposes and potentially identifying valuable targets for phishing schemes and other fraudulent activities.
Judge: Evidence Is “Damning”
In November 2024, Yuen filed for an asset preservation injunction requesting the court to freeze the disputed cryptocurrency, formally recognize his ownership rights, and either restore the Bitcoin or compensate him with equivalent monetary value.
Justice Cotter’s written opinion stated that Yuen possesses “a very high probability of success,” citing the audio evidence and the items discovered during the search of Li’s residence.
“The transcripts are damning,” Cotter observed, noting that Li provided no justification for the Bitcoin transfers.
Justice Cotter further advocated for expedited trial proceedings, characterizing them as “necessary given the security threats to, and volatility of value of, the Bitcoin.”
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