Ex-Wife Accused of Orchestrating $238 Million Bitcoin Heist Following Divorce
A sensational legal battle unfolding in London's High Court has exposed allegations of a massive cryptocurrency theft following a divorce, with the case poised to challenge how English civil courts handle digital assets. Ping Fai Yuen has filed a lawsuit against his ex-wife, Fun Yung Li, accusing her of conspiring with a hacker to steal more than 2,323 Bitcoin from his digital wallet.
The Staggering Value of the Alleged Theft
According to court documents published in March, the stolen Bitcoin has been valued at approximately £180 million, equivalent to US$238 million, since litigation commenced. This represents one of the most substantial cryptocurrency theft cases ever brought before English courts, highlighting the immense financial stakes involved in digital asset disputes.
The Alleged Conspiracy and Secret Recordings
Yuen claims his ex-wife collaborated with an unidentified hacker to obtain passwords needed to access his so-called cold wallet—a secure offline storage method for cryptocurrency. The alleged plot was reportedly uncovered when Yuen's daughter tipped him off about suspicious activities. Acting on this information, Yuen secretly recorded conversations between Li and an unidentified caller discussing how to navigate money laundering checks for large cryptocurrency transfers.
"You claim that your money was Bitcoin, such large amount, so many questions, how are you going to explain about it," the unidentified person reportedly told Li during the recorded conversation, according to court documents. "Such large amount even 10 banks, which it's not enough to put them into, you cannot explain how you obtain such large amount of money."
Legal Complications and Denials
Li, who currently resides in Hong Kong, has denied all involvement in the alleged theft. Her response to the court consisted of a one-sentence affidavit stating she was "unaware of any information required to be provided in response to the matters." The presiding judge described this as "a bare denial of any involvement in the matters alleged in the straight forward factual claim as presented."
Lawyers representing both parties have declined to comment on the ongoing case, which is scheduled to proceed to trial following a preliminary hearing on March 2.
Violent Confrontation and Criminal Charges
The court documents reveal that when Yuen initially discovered the Bitcoin theft, he confronted his ex-wife and assaulted her. This incident led to his arrest, and in 2024 he pleaded guilty to assault occasioning actual bodily harm along with two offenses of common assault. These criminal proceedings have added another layer of complexity to the already contentious civil case.
Testing the Limits of English Law
Judge Barry Cotter's ruling has exposed significant gaps in English law regarding digital assets and their treatment in civil lawsuits. The judge determined that Yuen cannot sue his wife for simply taking his digital assets because, unlike physical possessions such as paintings or luxury watches, cryptocurrency does not constitute a tangible object under current UK law.
This legal void persists despite the government's introduction of the Property (Digital Assets etc.) Act last year, which failed to address this specific issue. During proceedings, Yuen's legal team pointed to precedent cases in Canada, New Zealand, and several U.S. states where courts have permitted civil claims over stolen digital assets.
Judge Cotter noted that this case provides "fertile ground" to potentially fill this legal gap, suggesting that the outcome could establish important precedent for how English courts handle cryptocurrency disputes in divorce and theft cases moving forward.
International Implications for Cryptocurrency Regulation
The London case highlights the global challenges courts face when adjudicating disputes involving digital assets that transcend traditional legal categories. As cryptocurrency becomes increasingly mainstream, legal systems worldwide are grappling with how to classify and protect these assets within existing property frameworks.
The trial's outcome could influence how other jurisdictions approach similar cases, particularly as the value of digital assets continues to grow and more individuals hold significant cryptocurrency portfolios subject to division in divorce proceedings or vulnerable to sophisticated theft schemes.
