Ex-wife accused of stealing $238m Bitcoin
A high-stakes legal battle in London is set to test how English courts treat digital assets after a businessman accused his ex-wife of orchestrating the theft of Bitcoin worth up to $238 million following their divorce.
Ping Fai Yuen has brought a civil action against Fun Yung Li, alleging that she conspired with a hacker to access his secure cryptocurrency “cold wallet” and transfer more than 2,323 Bitcoin beyond his control. The assets have been valued at as much as £180 million since the case began, according to a court ruling published on March 10.
The claimant maintains that the alleged scheme involved obtaining his password and secretly moving the digital holdings. According to the ruling, Yuen’s legal team said he became suspicious after being alerted by his daughter and subsequently recorded a conversation in which his former spouse discussed difficulties in explaining the origin of large sums of money during financial checks.
“You claim that your money was Bitcoin, such large amount, so many questions, how are you going to explain about it,” an unidentified caller was quoted as saying. “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.”
Li, who is now based in Hong Kong, has denied the allegations and submitted a brief affidavit to the court. The judge described her response as minimal, stating: “It was essentially a one sentence response confirming that she was “unaware of any information required to be provided in response to the matters…” In my judgment it can be properly described as a bare denial of any involvement in the matters alleged in the straight forward factual claim as presented.”
The case has also revealed personal tensions between the former couple. The ruling noted that Yuen confronted his ex-wife after discovering the alleged theft and assaulted her. He was later arrested and, in 2024, pleaded guilty to assault occasioning actual bodily harm and two counts of common assault.
Beyond the personal dispute, the case has exposed a significant gap in English law regarding the treatment of cryptocurrencies. Presiding judge Barry Cotter indicated that, under current legal frameworks, Yuen may face difficulty pursuing a straightforward claim for the recovery of his digital assets, as such claims traditionally apply to tangible property.
Although recent legislation has sought to recognise digital assets, it does not fully resolve how they should be handled in civil disputes. During proceedings, Yuen’s lawyers pointed to legal precedents in jurisdictions such as Canada, New Zealand and parts of the United States where courts have accepted claims involving stolen cryptocurrencies.
The case, which is expected to proceed to full trial, is now being closely watched as a potential landmark that could shape how digital wealth is treated under English civil law.
