She Used Their Home CCTV to Steal $172M in Bitcoin. Now It’s Going to Trial.

TLDR

• A UK man claims his estranged wife stole 2,323 Bitcoin from his hardware wallet in August 2023 using home CCTV to capture his recovery phrase
• The Bitcoin was worth around $60 million at the time of the alleged theft but is now valued at roughly $172 million
• The funds were moved to 71 blockchain addresses and have not moved since December 21, 2023
• A UK High Court judge rejected the main conversion claim but allowed the case to proceed under alternative legal claims
• Justice Cotter said the husband has “a very high probability of success” and recommended an early trial

A UK man, Ping Fai Yuen, says his estranged wife, Fun Yung Li, secretly recorded the 24-word recovery phrase to his Trezor hardware wallet using home CCTV cameras. He claims she then used that phrase to transfer 2,323 Bitcoin without his permission in August 2023.

The Bitcoin was worth close to $60 million at the time. At today’s price of around $74,000 per coin, it is now valued at roughly $172 million.

The stolen funds passed through several transactions before landing in 71 separate blockchain addresses. None of those addresses have recorded any activity since December 21, 2023, according to court documents.

Yuen said his daughter tipped him off that his wife was planning to take the Bitcoin. After that warning, he installed audio recording equipment in the home. He claims the recordings capture his wife discussing the theft and how to move large sums of money without drawing attention from banks or police.

Police arrested Li and seized several cold wallets and watches during a search of her home. She was later released on bail. Authorities later said there would be no further action pending new evidence.

Legal Battle Over Crypto Property Rights

The case raises a direct legal question: can Bitcoin be treated as property under existing English law?

Li’s lawyers asked the court to throw out the case. Their argument was that Yuen’s main claim was conversion, a legal concept in England that traditionally applies only to physical property and cannot apply to digital assets like Bitcoin.

The judge agreed that conversion did not apply. However, Justice Cotter ruled the case could still go to trial under separate legal claims that could allow Yuen to recover the Bitcoin if his allegations are proven.

In a separate incident in September 2024, there was a violent confrontation between Ping and Li. Yuen later pleaded guilty to assault occasioning actual bodily harm and two counts of common assault.

Yuen has also told the court he believes the 71 Bitcoin addresses have been targeted in a dusting attack. This is where small amounts of crypto are sent to wallets to track activity and potentially identify high-value holders for phishing and other scams.

Judge: Evidence Is “Damning”

In November 2024, Yuen applied for an asset preservation injunction asking the court to freeze the cryptocurrency, formally declare his ownership, and either return the Bitcoin or award him the equivalent value in cash.

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