Key Highlights
- A UK High Court allowed Ping Fai Yuen’s lawsuit against his estranged wife Fun Yung Li over 2,323 Bitcoin to go to trial.
- Yuen claims Li allegedly used CCTV to record his 24-word wallet recovery phrase, which allowed her to transfer the Bitcoin.
- The court rejected the main “conversion” claim but allowed other legal claims, like unjust enrichment and constructive trust, to continue.
A UK High Court has allowed a lawsuit over the alleged theft of 2,323 Bitcoin, now worth about $172 million, to move forward to trial.
The lawsuit involves British businessman Ping Fai Yuen and his estranged wife Fun Yung Li, over a disputed transfer that took place in England in August 2023, raising questions about who owns the Bitcoin and how it was moved.
Yuen claims Li stole his wallet password
The case was brought to the court by Yuen, who said his wife took his Bitcoin without his permission. He said the Bitcoin was stored in a Trezor hardware wallet, which is protected by a PIN and a 24-word recovery phrase.
According to court documents, Li allegedly used CCTV cameras inside their home to secretly record him entering the recovery phrase. Yuen claims she then moved the Bitcoin through many transactions and later spread it across 71 different blockchain addresses. Records show that the funds have not moved since December 21, 2023.
In response, Li asked the court to dismiss the case, arguing that the legal claim of conversion only applies to physical property and not digital assets like Bitcoin.
The court agreed with her on that point. However, the judge still allowed the case to continue under other legal claims, including unjust enrichment and constructive trust. These claims could still allow Yuen to recover the Bitcoin if he proves his case.
Justice Cotter said, “the claimant has demonstrated a very high probability of success” and described parts of the evidence as “damning,” including recorded conversations and items found during a police search.
Personal issues amid police investigation
There are also personal issues that exist in the couple’s relationship. After discovering the alleged transfer, Yuen confronted Li and later pleaded guilty in 2024 to assault-related charges.
During the investigation, the police conducted a search of Li’s property, where they found a number of hardware wallets and a recovery phrase. Authorities later announced that there will be no further action taken unless new evidence is presented.
Li, meanwhile, denies all of the allegations and claims that she does not have sufficient knowledge about the Bitcoin transaction. The court has decided that the case will be sent for a full trial, where both parties will show their evidence for the case.
Broader context
The case is an example of how the laws in the UK are slowly catching up with digital assets, such as Bitcoin. In the past, the law only clearly recognized physical property and legal rights. Bitcoin does not fully fit into these categories.
New laws, like the Property (Digital Assets, etc.) Act 2025, also indicate that digital assets can be classified as property rights. However, courts are still working out how to apply these rules in real cases. This trial may help set an example for how similar crypto cases will be handled in the future.
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