Wife Allegedly Stole £180 Million in Bitcoin by Secretly Filming Husband's Passwords
A wife is accused of stealing an estimated £180 million worth of Bitcoin from her husband by covertly installing a CCTV system to spy on his security passwords. The High Court heard that Fun Yung Li took the cryptocurrency from Ping Fai Yuen, 44, as the couple discussed divorce proceedings.
The businessman alleges that his wife set up hidden cameras in their family home in an exclusive Brighton neighbourhood, capturing where he stored his passwords. This case involves 2,323 Bitcoin, valued between £160 million and £180 million, with Yuen suing his wife and her sister, Lai Yung Li, for its return.
Details of the Cryptocurrency Theft Allegations
The Bitcoin was held in a digital ledger accessed via a 'cold wallet'—a device not connected to the internet, protected by a six-digit PIN. However, anyone with the 'seed phrase,' a set of 24 words acting as a master password, could recreate the wallet on another device. Yuen claims his wife obtained this seed phrase through her surveillance.
In July 2023, Yuen first learned of the alleged theft when his eldest daughter expressed suspicions. He then installed audio recording equipment in their home, gathering evidence that he says proves Li 'obtained the seed phrase and exfiltrated the Bitcoin.'
Recorded Conversations and Legal Proceedings
Transcripts from the recordings include exchanges where Li allegedly discussed the CCTV cameras and the transfer of Bitcoin. One transcript reads: 'The bitcoin has transferred to me but can it be seen that you have taken it?' Yuen also recorded her expressing concerns about potential money laundering charges due to the large sums involved.
Yuen asserts that Li moved the cryptocurrency to 71 other blockchain accounts, possibly aided by her sister. In August 2023, Yuen confronted his wife, leading to his arrest; he later pleaded guilty to actual bodily harm and two counts of common assault. He reported the alleged theft in December, resulting in Li's arrest.
Police Investigation and Court Rulings
During a search of the home, detectives found ten cold wallets, five recovery seeds, and several watches. Police have since stated they will take no further action pending new evidence. In the High Court, Mr Justice Cotter remarked that Yuen had 'demonstrated a very high probability of success' against his wife.
The judge noted, 'The evidence is that he was warned of what [his wife] was seeking to do, the transcripts are damning and when the [wife's] property was searched the necessary equipment to exfiltrate the bitcoin was found.' He added that Li has had opportunities to explain but has declined.
Ongoing Legal Actions and Implications
Li, who was born in China and now resides in Hong Kong, filed an affidavit claiming she was 'unaware of any information required to be provided in response' to questions about the cryptocurrency transfer. Yuen is seeking the return of the Bitcoin or its equivalent value, along with a freezing order on assets held by his wife and sister-in-law.
Mr Justice Cotter emphasised the need for an early trial due to Bitcoin's volatile value. This case highlights significant issues in digital asset security and marital disputes, with potential ramifications for cryptocurrency regulation and personal privacy laws.
