LONDON, March 17, 2026 — A UK High Court judge has stated a husband stands a high chance of recovering $176 million in Bitcoin he alleges his estranged wife stole by covertly recording his hardware wallet’s seed phrase using a security camera.
Alleged Theft via Surveillance
In a judgment filed last week, Justice Cotter of the UK’s High Court of Justice detailed claims by claimant Ping Fai Yuen. Yuen alleges his wife, Fun Yung Li, and her sister used a CCTV camera to record him accessing his Trezor hardware wallet in 2023.
The surveillance allegedly captured his seed phrase and access codes. Lawyers for Yuen claim the defendants then transferred 2,323 Bitcoin to 71 different addresses. Court documents indicate no transactions have occurred at those addresses since December 21, 2023.
Yuen reported the alleged theft to police after the last transfer. Law enforcement arrested his wife and seized several cold wallets and watches. She was later released on bail.
Audio Evidence and Legal Proceedings
Yuen claims his daughter tipped him off about the plot. He subsequently installed audio recording equipment and captured conversations where Fun allegedly discussed the theft and moving large sums undetected.
“The transcripts are damning,” Justice Cotter wrote in his judgment. He noted that when the defendant’s property was searched, “the necessary equipment to exfiltrate the Bitcoin was found.”
In November 2025, Yuen applied for an asset preservation injunction. He asked the court to freeze all cryptocurrency linked to his wife, formally declare his ownership of the Bitcoin, and order its return or equivalent fiat value.
Judge Sees Strong Case for Claimant
Justice Cotter’s analysis found Yuen has demonstrated a “very high probability of success.” This assessment is based on the collected evidence and the fact that Fun did not provide any alternative explanation for the movement of the Bitcoin.
“In my judgment the claimant has demonstrated a very high probability of success,” Cotter wrote. He recommended an early trial, describing it as necessary due to the security threats and value volatility of the Bitcoin involved.
If the parties cannot agree on how to proceed, the court will schedule a case management hearing. The judge’s recommendation pushes for a swift resolution to the dispute.
Complicating Factors and Security Concerns
Yuen expressed concern that the Bitcoin addresses have been targeted in a crypto dusting attack. These attacks involve sending tiny amounts of cryptocurrency to wallets to track activity and identify large holders for potential phishing or scams.
A separate incident in September 2024 involved a violent confrontation between Yuen and his wife. Yuen was charged with assault occasioning actual bodily harm and two counts of common assault. He later pleaded guilty to those charges.
Authorities initially stated there would be no further action on the theft allegation pending new evidence. The civil case in the High Court is proceeding separately from any potential criminal proceedings.
What Happens Next
The court will now move to implement the asset preservation order to freeze the disputed cryptocurrency. An early trial date is expected to be set, given the judge’s recommendation and the volatile nature of the asset.
This case highlights the security risks associated with physical access to seed phrases, even within private residences. For more information on securing cryptocurrency holdings, refer to guidance from the UK’s National Cyber Security Centre.
The outcome could set a significant precedent for the treatment of high-value digital asset theft within UK civil law, particularly in marital disputes.
Updated insights and analysis added for better clarity.
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