A $172 Million Domestic Dispute

Ping Fai Yuen, a UK resident, has accused his estranged wife Fun Yung Li and her sister Lai Yung Li of stealing 2,323 bitcoin from his Trezor hardware wallet by using home CCTV cameras to secretly record his recovery seed phrase. The bitcoin, valued at just under $60 million at the time of the alleged theft in August 2023, has since tripled to approximately $172 million.

According to court filings at the UK High Court of Justice, Yuen's daughter first warned him in July 2023 that his wife was plotting to take his bitcoin. Weeks later, on August 2, 2023, the entire balance of 2,323 bitcoin was transferred out of his wallet and dispersed across 71 different blockchain addresses. None of the addresses are held at exchanges, making recovery through conventional law enforcement channels significantly harder.

Recordings, Raids, and a Guilty Plea

After discovering the transfer, Yuen installed audio recording equipment in the home and captured what the court later described as "damning" conversations. The recordings allegedly captured Li stating:

'The Bitcoin has transferred to me.'

The conversations also included discussions about plans to "take all of it" and references to laundering the proceeds.

The situation turned violent in September 2024 when Yuen confronted Li. He was subsequently arrested and pleaded guilty to assault occasioning actual bodily harm and two counts of common assault. Li was also arrested in connection with the alleged theft but was released on bail, with police stating they would take "no further action pending new evidence."

A search of the property yielded ten cryptocurrency cold wallets and recovery seeds, now held as evidence. The stolen bitcoin has not moved since December 21, 2023, and the 71 addresses have been targeted by crypto dusting attacks, a technique used to track wallet activity.

The Court's Ruling

Justice Cotter, delivering the ruling on March 17, 2026, found that Yuen had demonstrated a "very high probability of success" in his claim. The judge noted that the evidence included not only the audio recordings but also equipment seized during the property search, which he considered significant in establishing the chain of events. The fact that the bitcoin has remained stationary across 71 addresses since December 2023 also weighed in Yuen's favor, suggesting the funds have not been liquidated.

While Li's motion to dismiss was partially granted on the conversion claim under traditional property law, the case will proceed to trial on alternative legal grounds. Yuen is seeking a comprehensive freeze on all cryptocurrency associated with his wife, a formal court declaration of bitcoin ownership, and either the return of the 2,323 bitcoin or their fiat currency equivalent.

Why It Matters

This case is a textbook demonstration of why single-signature setups are not enough for serious bitcoin holdings. A Trezor, a Ledger, or any cold storage device protects against remote attackers but offers zero defense against someone with physical access to your seed phrase. Yuen's entire fortune was secured by a single key, and his wife reportedly captured that single point of failure on camera.

Consider your bitcoin security like climbing a staircase. Keeping coins on an exchange is ground level. A hardware wallet is a step up. A multi-signature setup, where multiple keys held in separate locations must authorize a transaction, is the floor above that. Had Yuen used multi-sig, one compromised key would not have been enough to move a single sat. If you're holding life-changing value on a single-sig setup, the question is not whether you can afford multi-sig. It's whether you can afford not to have it.