TL;DR
- A UK resident alleges that his estranged wife took control of $172 million in Bitcoin by secretly recording him and accessing his hardware wallet’s seed phrase.
- Audio recordings submitted in court reportedly capture discussions about transferring Bitcoin.
- The case has triggered a legal battle over ownership, asset preservation, and potential recovery of the cryptocurrency through the High Court.
Ping Fai Yuen, a UK resident, claims that his estranged wife, Fun Yung Li, gained access to over 2,323 Bitcoin stored on a Trezor hardware wallet in 2023. Court filings indicate that the Bitcoin, valued at around $172 million at the time, was transferred from his wallet on August 2 and dispersed across 71 addresses. No further movements were detected after December 21, 2023.
Warned by his daughter in July 2023 that his wife might attempt to take control of his crypto holdings, Ping installed audio equipment in his home. The recordings allegedly capture discussions between Fun and her sister, Lai Yung Li, about obtaining the seed phrase through CCTV monitoring. The court documents highlight phrases such as “The Bitcoin has transferred to me” and “take all of it” from the recordings.
Audio Evidence Highlights Alleged Covert Recording
The filings claim that the wife covertly recorded Ping while he entered his wallet password, potentially enabling her to move the funds. Following the discovery, Ping confronted Fun, resulting in his arrest for assault, which he later pleaded guilty to, while also reporting the alleged Bitcoin transfer to authorities. Police seized ten crypto cold wallets, some linked to Ping, but released Fun on bail after a no-comment interview. Authorities have stated they will take no further action pending new evidence.
Court Actions Seek Crypto Asset Preservation
In November 2025, Ping filed for a proprietary asset preservation injunction to freeze Fun’s crypto assets, assert ownership of the Bitcoin, and recover the funds or equivalent value in GBP. Justice Cotter, presiding over a hearing in March, noted that Ping demonstrates a “very high probability of success”, citing audio evidence and the presence of crypto-exfiltration equipment at Fun’s property. The judge emphasized that an early trial is important given Bitcoin’s market volatility.
The case underscores the legal complexities of cryptocurrency ownership and disputes, particularly when digital assets intersect with family conflicts. With an injunction pending, the High Court will now determine whether Ping can reclaim the Bitcoin or its equivalent value, potentially setting a precedent for future crypto-related asset claims.
