U.K. High Court Allows Bitcoin Theft Lawsuit to Proceed in Landmark Crypto Property Case

A U.K. High Court judge has greenlit a lawsuit involving the alleged theft of over 2,323 Bitcoin, spotlighting how British courts are working to apply traditional property law to digital assets. The case raises critical questions about cryptocurrency ownership and legal protections in England and Wales.

London resident Ping Fai Yuen claims his estranged wife, Fun Yung Li, secretly obtained the 24-word recovery phrase to his Trezor hardware wallet by monitoring him through home CCTV cameras. Using that phrase, she allegedly recreated the wallet and transferred the Bitcoin without his consent in August 2023. At the time, the stolen cryptocurrency was valued at approximately $60 million. Based on current Bitcoin prices hovering around $74,000, those same coins are now worth roughly $172 million.

The funds were moved through multiple transactions and are currently spread across 71 blockchain addresses, none held at exchanges. On-chain records show the Bitcoin has remained untouched since December 21, 2023. Authorities conducted a search of Li's home and recovered several hardware wallets and recovery seeds, though no further criminal action has been taken pending new evidence.

Yuen, who later pleaded guilty to assault charges against Li following a confrontation over the alleged theft, is now pursuing civil recovery through the courts. Li's legal team sought to have the case dismissed, arguing that the tort of conversion, which covers the unlawful taking of physical property, cannot legally apply to Bitcoin or other digital assets. The judge agreed with that specific argument but allowed the lawsuit to continue under alternative legal claims.

The ruling reflects a growing need for clearer legal frameworks around digital asset ownership. As Bitcoin and crypto adoption expands globally, courts worldwide, including those in the U.K., are increasingly being asked to define how existing laws protect holders of digital wealth.