A recent bizarre cryptocurrency theft occurred in the UK, where a man accused his separated wife of using home surveillance cameras to steal the recovery phrase of his cold wallet, resulting in the theft of 2,323 bitcoins worth approximately $172 million. The UK High Court approved moving this high-profile lawsuit to the trial stage last week.
Surveillance Camera Used to Steal Cold Wallet Recovery Phrase
According to court documents, UK resident Ping Fai Yuen accused his separated wife, Fun Yung Li, of secretly recording his cold wallet’s 24-word recovery phrase with a home surveillance camera in August 2023, and transferring all 2,323 bitcoins without his consent.
The bitcoins were originally stored in a PIN-protected Trezor cold wallet, but anyone with the recovery phrase can reconstruct the wallet and transfer funds. At the time of theft, the cryptocurrency was valued at about $60 million. Given Bitcoin’s recent surge past $74,000, the total value has skyrocketed to approximately $172 million. The funds have since been transferred multiple times and are now dispersed across 71 non-exchange blockchain addresses, with no activity since December 21, 2023.
Divorce Proceedings Trigger Massive Theft
During divorce negotiations, relations between the two had already soured. The man stated in court that after his daughter warned him that his wife was attempting to steal Bitcoin, he installed recording devices inside the house. After discovering the asset transfer, he and his wife engaged in a violent altercation. In 2024, he was charged with two counts of criminal assault. Police seized multiple hardware wallets and backup recovery phrases during a search of his wife’s residence. However, authorities have not taken further legal action until new evidence emerges.
Are Digital Assets Subject to Traditional Property Laws?
The defendant’s lawyer attempted to have the case dismissed, arguing that the man’s main claim of “conversion” applies only to tangible property under traditional UK law and should not extend to digital assets like Bitcoin. While the judge agreed that traditional property law generally applies to tangible assets, the court ultimately ruled that the case could proceed based on other legal arguments. The judge emphasized that if the man’s allegations are proven true, the Bitcoin could still be recovered through legal channels. The case is now set to proceed to a formal court trial.
This article, “$172 Million Bitcoin Stolen! Surveillance Camera Records Recovery Phrase, UK Man Sues Separated Wife,” was first published by Chain News ABMedia.
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