A significant legal dispute has emerged in the UK involving allegations of theft of a staggering $172 million in Bitcoin. The case, documented in the High Court of Justice, centers around Ping Fai Yuen, who claimed that his estranged wife, Fun Yung Li, unlawfully accessed and transferred his Bitcoin holdings.
In 2023, Yuen had stored over 2,323 Bitcoin on a Trezor hardware wallet, which he believed was secure until August 2 of that year, when the entire amount was reportedly transferred without his consent. The transaction was traced across 71 different Bitcoin addresses, with no further transactions occurring since December 21, 2023.
The allegations of theft came to light after Yuen’s daughter warned him in July about her mother’s potential intentions with his cryptocurrency. In response, Yuen installed audio equipment in his home to gather evidence. The recordings he later obtained reportedly feature Li discussing the use of CCTV cameras and ways to access her husband’s wallet. The court documents indicate that phrases from the audio include, “The Bitcoin has transferred to me” and “take all of it.”
After discovering the unauthorized transactions, Yuen confronted Li, which escalated to an assault. Following this incident, Yuen faced legal consequences, pleading guilty to charges of assault occasioning actual bodily harm along with two counts of common assault. He subsequently reported the theft to the police, which led to Li’s arrest in 2023. During the police investigation, authorities seized ten cryptocurrency cold wallets, three of which appeared to be linked to Yuen. However, Li was released after providing a no-comment interview and making bail.
Despite the police finding evidence, they confirmed no further action would be taken unless new evidence emerged. In November 2025, Yuen filed for a proprietary asset preservation injunction, seeking to declare his ownership of the stolen Bitcoin, freeze Li’s crypto assets, and demand the return of the cryptocurrency or its equivalent inGBP.
During a hearing on March 2, Justice Cotter indicated that Yuen had a substantial likelihood of succeeding in his claim against Li. He noted that the evidence was compelling, particularly given the warning Yuen received about Li’s intentions and the incriminating nature of the audio transcripts. Justice Cotter emphasized the relevance of applying Occam’s razor, favoring simpler explanations in legal matters. He also highlighted Li’s refusal to present her side of the story, indicating a lack of cooperation.
In light of Bitcoin’s volatile nature, the judge stressed the urgency of pursuing an early trial to resolve the matter. This case not only highlights the complexities of digital asset ownership in divorce disputes but also raises significant questions about the security of cryptocurrency holdings in personal relationships.
