London Court to decide landmark case as businessman accuses ex-wife of $238m bitcoin theft

A high-stakes civil case that could set a legal precedent for how English courts treat digital assets is underway, after a businessman accused his ex-wife of masterminding the theft of Bitcoin valued at up to $238 million following their divorce.

Ping Fai Yuen has filed a civil claim against Fun Yung Li, alleging she conspired with a hacker to breach his secure cryptocurrency “cold wallet” and transfer control of more than 2,323 Bitcoin. According to a court ruling published on March 10, the assets have been valued at approximately £180 million since the legal proceedings began.

Mr. Yuen’s legal team argues the alleged scheme involved obtaining his password and secretly moving the digital holdings. Court documents reveal that Mr. Yuen became suspicious after an alert from his daughter, prompting him to secretly record a conversation. In that recording, his former spouse is said to have discussed the difficulties of 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 is 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.”

Ms. Li, who currently resides in Hong Kong, has denied the allegations. In her response to the court, she submitted a brief affidavit that the presiding judge described as minimal. “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,” the judge’s ruling stated.

The case has also exposed deep personal animosity between the former couple. The ruling noted that Mr. Yuen confronted his ex-wife after discovering the alleged theft, leading to an assault. He was subsequently arrested and, in 2024, pleaded guilty to assault occasioning actual bodily harm and two counts of common assault.

Beyond the personal dispute, legal experts are closely watching the case as it highlights a significant gap in English law regarding the classification of cryptocurrencies. Presiding Judge Barry Cotter indicated that under current legal frameworks, Mr. Yuen may face challenges in pursuing a straightforward claim for the recovery of his digital assets, as such claims traditionally apply to tangible property.

While recent legislation has begun to recognize digital assets, it does not fully clarify how they should be handled in civil disputes. During the proceedings, Mr. 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 is expected to proceed to a full trial and is being viewed as a potential landmark decision that could shape the future treatment of digital wealth under English civil law.