Home Security Cameras Used to Steal $172M in Bitcoin, Trial Set to Begin

TLDR

• Ping Fai Yuen alleges his estranged spouse Fun Yung Li accessed 2,323 Bitcoin from his Trezor wallet in August 2023 by recording his seed phrase via household surveillance cameras
• The cryptocurrency held a value near $60 million when allegedly stolen but has since appreciated to approximately $172 million
• The digital assets were distributed across 71 different blockchain addresses with no transaction activity recorded after December 21, 2023
• While dismissing the primary conversion claim, a UK High Court judge permitted the case to advance on alternative legal grounds
• Justice Cotter determined the husband possesses “a very high probability of success” and advised scheduling an expedited trial

Ping Fai Yuen, a British man, alleges that his estranged spouse Fun Yung Li covertly captured the 24-word seed phrase for his Trezor hardware wallet through domestic surveillance equipment. According to his claims, she subsequently utilized this information to authorize the unauthorized transfer of 2,323 Bitcoin in August 2023.

The Bitcoin held an estimated value approaching $60 million during the alleged incident. Based on current market prices hovering around $74,000 per token, the holdings are now worth approximately $172 million.

The disputed cryptocurrency moved through multiple transactions before settling into 71 distinct blockchain addresses. Court filings indicate these addresses have remained dormant with zero recorded movements since December 21, 2023.

According to Yuen’s testimony, his daughter alerted him to his wife’s alleged intentions to appropriate the Bitcoin. Following this warning, he deployed audio surveillance technology throughout their residence. He asserts these recordings document his wife deliberating about the theft and strategizing methods to transfer substantial funds while avoiding scrutiny from financial institutions and law enforcement.

Law enforcement officials arrested Li and confiscated multiple cold storage wallets and timepieces during a residence search. She was subsequently released under bail conditions. Authorities eventually determined no additional action would be pursued unless fresh evidence emerged.

Legal Battle Over Crypto Property Rights

This case presents a fundamental legal question: can Bitcoin be classified as property under current English legal frameworks?

Li’s legal representatives petitioned for case dismissal. They contended that Yuen’s primary allegation centered on conversion, a legal doctrine in England historically applicable exclusively to tangible property and incompatible with digital assets such as Bitcoin.

The presiding judge concurred that conversion was inapplicable. Nevertheless, Justice Cotter determined the proceedings could advance to trial based on alternative legal theories that might enable Yuen to reclaim the Bitcoin should his accusations be substantiated.

In an unrelated September 2024 incident, a physical altercation occurred between Ping and Li. Yuen subsequently entered guilty pleas to assault occasioning actual bodily harm plus two counts of common assault.

Yuen has additionally informed the court of his suspicion that the 71 Bitcoin addresses have been subjected to a dusting attack. These attacks involve transmitting minimal cryptocurrency amounts to wallets for tracking purposes and potentially identifying valuable holders for phishing schemes and additional fraudulent activities.

Judge: Evidence Is “Damning”

In November 2024, Yuen filed for an asset preservation injunction requesting the court freeze the cryptocurrency, formally recognize his ownership rights, and either restore the Bitcoin or compensate him with equivalent cash value.

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