A significant legal battle involving over $172 million in Bitcoin has progressed in the UK’s High Court of Justice, centering around allegations that a man’s estranged wife pilfered thousands of coins from his hardware wallet using covert surveillance within their home.
Court documents reveal that Ping Fai Yuen, a resident of the UK, possessed 2,323 Bitcoin in a Trezor hardware wallet as of 2023. On August 2 of that year, the entirety of this balance was transferred without Yuen’s consent, leading to the funds being dispersed across 71 different addresses. Notably, there has been no recorded movement of these assets since December 21, 2023.
Yuen claims that his estranged wife, Fun Yung Li, gained unauthorized access to the wallet’s recovery phrase, which is essential for recreating the wallet and moving the associated funds. The legal filings indicate that she may have recorded Yuen within their home to capture the recovery phrase, potentially with assistance from her sister, Lai Yung Li, who is also named as a defendant in the case.
The court filings further elaborate on a warning Yuen received from his daughter in July 2023 regarding Li’s attempts to access his Bitcoin. In response, Yuen installed audio recording equipment in their residence, which has become pivotal evidence in the ongoing proceedings. Among the recordings referenced, Li allegedly said, “The Bitcoin has transferred to me” and “take all of it.” One notable recording from July 29, 2023, purportedly features Li discussing camera placement and the location of Yuen’s wallet credentials, further suggesting her covert intentions.
Following the unauthorized transfer, Yuen confronted Li and physically assaulted her, leading to his arrest. He subsequently pleaded guilty to assault occasioning actual bodily harm and two counts of common assault. In connection with the alleged theft, police launched an investigation, resulting in Li’s arrest in 2023. Officers seized ten crypto cold wallets during a search, some directly linked to Yuen. Following a no comment interview, Li was released, and police stated they would not pursue further action without new evidence.
In November 2025, Yuen moved to secure a proprietary asset preservation injunction, seeking judicial affirmation of his ownership over the Bitcoin, a freeze on Li’s crypto holdings, and the return of the assets or an equivalent amount in British pounds.
In a judgment after a March 2 hearing, Justice Cotter illustrated a strong likelihood of success for Yuen’s claims. He highlighted the warning from Yuen’s daughter, the incriminating audio transcripts, and the discovery of equipment capable of accessing the wallet as substantial proof. Justice Cotter remarked that the evidence indicates Yuen was forewarned about Li’s intentions and described the transcripts as “damning.” He also referenced Occam’s razor, suggesting that the simplest explanation, which aligns with the presented evidence, is most likely true.
Moreover, the volatility of Bitcoin underscores the urgency for a swift trial, as the value of the disputed assets could fluctuate during the litigation process. This case is poised to explore how English courts manage ownership disputes and recovery claims related to digital assets, potentially setting legal precedents in the realm of cryptocurrency.
