A UK man, Ping Fai Yuen, has told the High Court that his estranged wife, Fun Yung Li, stole 2,323 Bitcoin from his Trezor hardware wallet in 2023 after covertly recording his wallet seed phrase and access details. In a judgment filed last Tuesday, Justice Cotter set out Yuen’s claim that Li and her sister filmed him to capture the seed phrase, then moved roughly $176 million worth of BTC to 71 separate addresses.
According to court documents, Yuen became suspicious after a tip from his daughter. He installed audio-recording devices and says he captured recordings of Li discussing the alleged theft and methods for transferring large sums without alerting banks or authorities. Lawyers for Yuen say the implicated addresses have shown no transactions since December 21, 2023. He reported the suspected theft to police soon after the last transfer; officers arrested Li, seized several cold wallets and watches, and later released her on bail while the investigation continued. Authorities subsequently said there would be no further action pending new evidence.
In November, almost two years after the alleged removal of the Bitcoin, Yuen applied for an asset preservation injunction. He asked the court to freeze cryptocurrency linked to Li, to formally declare his ownership of the Bitcoin, and to secure either the return of the coins or an equivalent monetary award. Yuen also said he was monitoring the addresses and worried they might have been subjected to a dusting attack, in which attackers send tiny amounts of crypto to wallets to trace activity and identify owners for follow-up scams like phishing.
The judgment also records a separate incident in September 2024 involving a violent confrontation between Yuen and Li. Yuen faced charges including assault occasioning actual bodily harm and two counts of common assault, to which he later pleaded guilty.
Justice Cotter found that, on the balance of the evidence presented, Yuen has a high probability of succeeding in his claim. The judge noted warnings Yuen received about Li’s intentions, transcripts said to be damaging to Li’s account, and the discovery during searches of equipment allegedly capable of exfiltrating the Bitcoin. Because Li has not offered an alternative explanation for the movements of the funds, the judge concluded Yuen had demonstrated a very high likelihood of success.
Given the security risks and the volatility of Bitcoin’s value, Justice Cotter recommended holding an early trial. He said the court would set a case management hearing if the parties could not agree on the next steps.