Husband accuses wife of stealing over 2,000 bitcoins! Judge: The plaintiff has a very high chance of winning.

The UK High Court recently held a remote hearing for a high-value Bitcoin theft case. The plaintiff, Ping Fai Yuen, accused his estranged wife, Fun Yung Li, of stealing 2,323 Bitcoins stored in his Trezor hardware wallet in 2023. He claims she used CCTV footage at home to secretly record his seed phrase and access password, then transferred the assets in batches. The Bitcoins involved are valued at approximately $176 million USD at the time of reporting.

Plaintiff: Wife and her sister recorded seed phrase and transferred Bitcoin

Ping Fai Yuen and Fun Yung Li were originally married. The dispute arose during their divorce proceedings. In early July 2023, Ping’s eldest daughter told her father that her mother was planning to take his Bitcoin. Ping installed a recording device to monitor. Recordings from July 29 and 31 became key evidence, clearly capturing Fun Yung Li and her sister discussing: “The Bitcoin has already been transferred to my account,” “Take it first,” “Be careful, he can’t catch us,” “Use a second wallet,” “Find a hacker,” and also mentioning how to avoid banks and police detection of large sums.

According to a judgment published by the UK High Court’s King’s Bench Division on March 10, 2026, court documents show the plaintiff alleges that the first defendant, Fun Yung Li, and the second defendant, Lai Yung Li, were involved in exfiltrating the Bitcoin, transferring assets to multiple addresses. The plaintiff claims these Bitcoins were moved to 71 different addresses.

Court documents also include summaries of the recorded conversations, discussing how to handle large sums, avoid detection by banks or police, etc. The judgment notes that police found “equipment necessary for Bitcoin exfiltration” during a search of the defendants’ residence.

Police previously detained wife, but no further action yet

On August 2, 2023, Bitcoin was suddenly transferred out of Ping’s cold wallet, with no further transactions recorded afterward. After Ping reported the theft, police arrested Fun Yung Li on December 23, and searched her residence, recovering 10 cold wallets (including Trezor), 5 seed sets, and several luxury watches. Police successfully unlocked 4 wallets, 3 of which were confirmed to belong to Ping. Law enforcement later stated, “Insufficient evidence,” and unless new evidence emerges, no further action will be taken.

The case became more dramatic. In September 2024, Ping had a physical altercation with his wife after discovering the Bitcoin was transferred, and was charged with “causing actual bodily harm” and two counts of common assault. He pleaded guilty on September 13, 2024, and is serving time. He has since moved to Thailand, while Fun Yung Li resides in Hong Kong. The defendant, Fun Yung Li, submitted a brief denial of “lack of knowledge” in court documents and did not attend the hearing, with her lawyer only present as an observer. Her sister, Lai Yung Li, has completely avoided service and has not yet formally responded.

Court ruling highlights: some claims dismissed

On March 10, 2026, Judge Cotter issued a ruling (Case No.: KB-2025-004313, Yuen v Li [2026] EWHC 532 (KB)):

• Very high likelihood of success: “Evidence is very damaging to the defendant. The plaintiff was warned in advance by his daughter, and the recordings are highly incriminating. Also, equipment necessary for Bitcoin exfiltration was found at the defendant’s residence.”
• Asset freezing order maintained: Bitcoin remains frozen in 71 addresses; the court orders the defendant not to transfer or dispose of these assets.
• Some claims dismissed: Traditional claims of “conversion” and “trespass to goods” are not applicable to intangible assets like Bitcoin and have been removed; however, the plaintiff may amend the complaint within 7 days to pursue claims of “unjust enrichment,” “breach of confidentiality,” and “illegal means causing loss.”
• Other rulings: The defendant’s request for the plaintiff to provide security for legal costs was denied. Alternative service via notification to the defendant’s sister was approved. The court recommended promptly arranging a joint expert for encryption tracking and a formal trial.

Judge: Plaintiff’s success very likely! Early trial recommended

In this procedural ruling, Judge Cotter stated that, based on current evidence, the plaintiff’s chances of success are “very high.” He noted that the recordings are “highly damaging,” and the police found relevant equipment at the first defendant’s residence, strengthening the plaintiff’s case.

“I believe the plaintiff has demonstrated a very high probability of success,” said Judge Cotter. He added, “The evidence shows he was warned of the defendant’s intentions, the records are conclusive, and during the search of the defendant’s home, the necessary equipment for Bitcoin theft was found.”

Paragraph 102 of the judgment states that the first defendant had multiple opportunities to present her case but chose not to. The Bitcoins remain at the addresses they were transferred to, aligning with the plaintiff’s narrative. Based on these factors, the judge believes the plaintiff is very likely to win at trial.