A notable case concerning the ownership and security of cryptocurrency assets in the UK has entered the judicial process. The High Court has allowed the case to proceed, alleging the theft of approximately 2,323 Bitcoin (worth around $172 million).
The plaintiff, businessman Ping Fai Yuen, alleges that his estranged wife, Fun Yung Li, secretly obtained the recovery words for her hardware wallet and transferred Bitcoins without authorization. The incident allegedly occurred in August 2023.
The Bitcoins in question were reportedly stored in a Trezor cold wallet. Yuen claims his wife used security camera footage from their home to view the wallet’s seed phrase (recovery words) and then transferred the assets to addresses under her control.
The court ruling also highlighted an interesting legal point. The judge noted that the plaintiff’s claim of “conversion,” or wrongful acquisition of property, generally applies only to physical assets under UK law. Nevertheless, the court ruled that the case could proceed on different legal grounds and allowed the process to continue.
According to on-chain data, the Bitcoins in question are currently distributed across 71 different blockchain addresses. Analysis indicates that these assets have not seen any transactions since December 2023.
Experts say the outcome of the case could set a significant precedent in the UK regarding the legal status of crypto assets and digital property rights. Furthermore, the incident highlights once again that even hardware wallets can be at risk due to security flaws or personal breaches.
*This is not investment advice.