TLDR
- Ping Fai Yuen alleges his estranged spouse Fun Yung Li captured his 24-word recovery phrase through home surveillance cameras and transferred 2,323 Bitcoin in August 2023
- The cryptocurrency held a value of approximately $60 million when allegedly stolen, currently estimated at $172 million
- The transferred assets were distributed across 71 blockchain addresses, remaining dormant since December 21, 2023
- While the High Court judge dismissed the conversion claim, the case received approval to advance under alternative legal grounds
- Justice Cotter stated the plaintiff demonstrates “a very high probability of success” and advocated for expedited proceedings
Ping Fai Yuen alleges Fun Yung Li, his estranged wife, covertly monitored his 24-word recovery phrase for his Trezor hardware wallet through their home’s CCTV system. According to his claims, she subsequently accessed and transferred 2,323 Bitcoin without authorization during August 2023.
The Bitcoin held a value approaching $60 million during the alleged incident. Based on current pricing near $74,000 per coin, the cryptocurrency’s value has grown to approximately $172 million.
The allegedly stolen cryptocurrency underwent multiple transfers before arriving at 71 distinct blockchain addresses. Court documents indicate these addresses have remained inactive since December 21, 2023.
According to Yuen, his daughter alerted him about his wife’s intentions regarding the Bitcoin. Following this warning, he placed audio surveillance equipment throughout their residence. The recordings allegedly contain conversations where his wife discusses the theft and strategies for transferring substantial amounts of money while avoiding detection from financial institutions and law enforcement.
Authorities arrested Li and confiscated multiple cold wallets and watches when they searched her residence. She received bail following her arrest. Law enforcement subsequently announced they would take no additional steps without new evidence emerging.
Legal Battle Over Crypto Property Rights
The proceedings present a fundamental legal question: does Bitcoin qualify as property under current English law?
Li’s legal team petitioned the court for dismissal. They contended that Yuen’s primary claim relied on conversion, a traditional English legal principle that applies exclusively to tangible property and lacks applicability to digital assets such as Bitcoin.
The judge concurred that conversion did prove inapplicable. Justice Cotter determined the proceedings could advance to trial based on alternative legal claims that might enable Yuen to reclaim the Bitcoin should his allegations receive validation.
During September 2024, a physical altercation occurred between Ping and Li. Yuen subsequently entered guilty pleas for assault occasioning actual bodily harm plus two counts of common assault.
Yuen has informed the court of his belief that the 71 Bitcoin addresses have experienced a dusting attack. These attacks involve sending minimal cryptocurrency amounts to wallets for tracking purposes and potentially identifying valuable holders for phishing schemes and related fraudulent activities.
Judge: Evidence Is “Damning”
During November 2024, Yuen filed for an asset preservation injunction seeking court orders to freeze the cryptocurrency, formally establish his ownership, and either recover the Bitcoin or receive equivalent monetary compensation.
Justice Cotter determined that Yuen demonstrates “a very high probability of success,” referencing the audio transcripts and the items discovered when authorities searched Li’s residence.
“The transcripts are damning,” Cotter stated, noting Li provided no justification for the Bitcoin’s movement.
Justice Cotter additionally advocated for expedited trial proceedings, characterizing them as “necessary given the security threats to, and volatility of value of, the Bitcoin.”
