- High Court allows a theft case involving Bitcoin worth over $172M to proceed to trial.
- Husband claims wife used CCTV to steal 2,323 BTC from hardware wallet.
- Bitcoin was transferred through multiple addresses and is now stored across 71 wallets.
The bitcoin theft court case in the UK moves forward as a High Court judge allows a $172 million lawsuit over 2,323 BTC to continue. The case tests how property law applies to digital currency.
Alleged Theft and Court Case
According to court filings, U.K. resident Ping Fai Yuen’s estranged wife, Fun Yung Li, used CCTV cameras at their home to get the recovery phrase to his hardware wallet in August 2023.
The stolen Bitcoin was worth just under $60 million, but the amount has risen to roughly $172 million since.
The bitcoin was then stored in a Trezor cold wallet protected by a PIN, where anyone with the 24-word recovery phrase could recreate the wallet and move the funds.
Yuen’s main claim of conversion was rejected by the judge because it normally applies to physical property.
However, the case can continue under other legal claims that may allow recovery of the bitcoin if his allegations are proven.
Bitcoin Transfer and Security Details
Court documents show the stolen bitcoin was moved through multiple transactions. The funds are now split across 71 blockchain addresses, none held at exchanges.
The bitcoin has not been moved since December 21, 2023, because Yuen discovered the incident in 2024.
This led to an assault causing actual bodily harm and two counts of common assault in 2024.
Later on, authorities seized several hardware wallets and recovery phrases from Li’s home as evidence. The case shows the difficulty of recovering digital assets when funds are spread across multiple addresses.
Legal Issues and Cryptocurrency Law
Li asked the court to dismiss the case after the judge agreed that conversion usually applies to physical property.
But other claims were allowed to continue, which could lead to the recovery of the bitcoin. The case shows how English law is adjusting to digital currency.
Courts now need to look at ownership, transfer rights, and recovery for cryptocurrency stored in private wallets.
This trial raises questions about the security of hardware wallets, recovery phrases, and how cryptocurrency can be protected under existing law.