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 in 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 claims she used CCTV 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 divorce proceedings. In early July 2023, Ping’s eldest daughter told her father that her mother was planning to take his Bitcoin. Ping installed recording devices 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 discussing how to avoid banks and police detection for large sums.

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 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 recorded conversations, where defendants discuss handling large sums and avoiding detection by banks or police. The judgment mentions that police found equipment at the defendant’s residence necessary for exfiltrating Bitcoin during a search.

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 phrases, and several luxury watches. Police successfully unlocked four wallets, three of which were confirmed to belong to Ping. Law enforcement later stated there was “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 theft. He was charged with “causing actual bodily harm” and two counts of common assault, and pleaded guilty on September 13, 2024, serving time. Ping 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 by his daughter beforehand, recordings are highly incriminating, and equipment necessary for exfiltration was found at the defendant’s residence.”
• Asset freezing order remains in effect: Bitcoin remains frozen in 71 addresses, and the court orders the defendant not to transfer or dispose of them.
• Some claims dismissed: Traditional claims of “conversion” and “trespass to goods” do not apply to intangible assets like Bitcoin and have been removed; however, the plaintiff may amend the claim within 7 days to pursue new causes of action such as “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. Service on the defendant’s sister was approved via alternative means. The court recommended promptly appointing a joint expert in encryption tracking and scheduling a formal trial.

Judge: Plaintiff’s chances of winning are very high! Early trial recommended

In this procedural ruling, Judge Cotter stated that, based on current evidence, the plaintiff’s likelihood of success “is very high.” He noted that the recordings are “extremely damaging,” and the police found equipment at the first defendant’s residence necessary for exfiltrating Bitcoin, strengthening the plaintiff’s case.

“The evidence shows that the plaintiff was warned of the defendant’s intentions, the recordings are conclusive, and during the search of the defendant’s home, 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 Bitcoin remains at the addresses to which it was transferred, consistent with the plaintiff’s narrative. Based on these factors, the judge believes the plaintiff has a very high chance of success at trial.