A U.K. man is suing his estranged wife for allegedly stealing 2,323 Bitcoin, worth approximately $172.6 million, from his hardware wallet.
The dramatic High Court case, filed earlier this month, exposes a tangled web of secret surveillance, alleged betrayal, and the legal gray zones of digital wealth, capturing the growing clash between cutting-edge cryptocurrency and centuries-old property law.
The case centers on Ping Fai Yuen, a U.K. resident who alleges that his wife, Fun Yung Li, unlawfully gained access to his cryptocurrency holdings in 2023.
According to court filings, Yuen claims Li managed to obtain the recovery phrase to his hardware wallet by secretly monitoring him through surveillance cameras installed inside their home.
Yuen alleges that Li captured the wallet’s 24-word recovery phrase using the home’s CCTV system and used it to reconstruct the wallet and move the funds without his permission.
 
Notably, the alleged transfer occurred in August 2023, when the Bitcoin was valued at just under $60 million. Due to Bitcoin’s price appreciation since then, the same holdings are now estimated to be worth roughly $172 million.
Additionally, court documents indicate that the funds were moved through multiple transactions before being distributed across 71 separate blockchain addresses.
Further, according to filings, the Bitcoin has not been moved since December 2023 and is reportedly not held on cryptocurrency exchanges, making it more difficult to trace or recover.
Yuen initially attempted to pursue a claim based on “conversion,” a legal doctrine traditionally applied when someone wrongfully takes possession of another person’s physical property. However, the judge determined that the concept does not directly apply to digital assets like Bitcoin under existing interpretations of English law.
Despite this setback, the court allowed the lawsuit to continue under alternative legal grounds, which could still enable Yuen to recover the cryptocurrency if the allegations are proven during trial proceedings.
Nevertheless, the case has also revealed a series of unusual and deeply personal developments within the couple’s relationship. According to court filings, Yuen began installing audio recording devices inside the home after his daughter warned him that Li might attempt to take control of the Bitcoin holdings.
Following the discovery that the Bitcoin had been moved, tensions between the pair escalated dramatically. Yuen confronted Li about the missing funds, which ultimately led to a physical altercation.
Elsewhere, law enforcement authorities subsequently searched Li’s residence, seizing several hardware wallets and recovery phrases as part of the investigation.
Earlier this year, a court noted that a 22-year-old woman facing U.S. deportation may keep $850K stolen from her ex-boyfriend’s crypto wallet.
Miami man Michael Anthony Bravo met Maissa Jebali in June 2024, but their brief relationship ended abruptly. While he slept, Jebali allegedly transferred hundreds of thousands of TrumpCoin from his wallet into hers.
Private investigator David Bolton called it “a con from Day 1,” highlighting the dangers of unsecured crypto wallets and stolen recovery phrases.
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