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 a Trezor hardware wallet in 2023. He claimed that she used CCTV footage to secretly record his seed phrase and access password, then transferred the assets in batches. The Bitcoins involved were worth approximately $176 million 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 divorce proceedings. In early July 2023, Ping’s eldest daughter told her father that her mother was planning to take his Bitcoin. Ping then 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 me,” “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 for large sums of money.

According to a judgment published by the UK High Court’s King’s Bench Division on March 10, 2026, court documents show that the plaintiff alleges that the first defendant, Fun Yung Li, and the second defendant, Lai Yung Li, were involved in exfiltrating the Bitcoin, transferring it to multiple addresses. The plaintiff claims these Bitcoins were moved to 71 different addresses. Court documents also include summaries of the recorded conversations, which discuss how to handle large sums of money and avoid detection by banks or police. The judgment also states 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 four wallets, three of which were confirmed to belong to Ping. Law enforcement later stated that “insufficient evidence” was available, 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 served time. Ping has since moved to Thailand, while Fun Yung Li resides in Hong Kong. In court documents, the defendant only submitted a brief denial of “lack of knowledge” 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: 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 by his daughter beforehand, and the recordings are highly incriminating. Also, equipment necessary for Bitcoin exfiltration was found at the defendant’s residence.”
• Asset freezing order upheld: The Bitcoins remain frozen in 71 addresses, and the court ordered the defendant not to transfer or dispose of them.
• 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 litigation costs was denied. The court approved alternative service via notification to Lai Yung Li and recommended promptly arranging a joint expert for encryption tracking and 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.” The judge noted that the recordings are “extremely damaging,” and the equipment found at the first defendant’s residence further supports the plaintiff’s case.

“The evidence shows that the plaintiff was informed of the defendant’s intentions, and the records are conclusive. Moreover, during the search of the defendant’s residence, the necessary equipment for Bitcoin theft was discovered,” the judge wrote in paragraph 102 of the judgment.

The judge also mentioned 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 has a very high likelihood of success in the substantive trial.