A UK man lost 2,323 Bitcoin after his wife allegedly recorded his seed phrase using a home security camera. The haul, worth roughly $60 million at the time of the theft in August 2023, has since surged to about $172 million. Plaintiff Ping Fai Yuen claims his estranged wife Fun Yung Li used CCTV footage to capture the 24-word seed phrase as he operated a Trezor hardware wallet, then drained all funds.
Hardware Wallet Security Breached by Camera
Cold wallets are often considered the gold standard for crypto storage, but a physical surveillance device can bypass them entirely. After a tip-off from his daughter, Yuen recorded conversations at home where Li allegedly discussed the theft and money laundering. Police later recovered multiple hardware wallets from her residence. The stolen BTC now sits spread across 71 non-exchange addresses, untouched since December 21, 2023.
Court Rejects Conversion Claim for Digital Assets
Justice Cotter of the UK High Court ruled on March 10 that the common law tort of conversion applies only to tangible property. Despite the UK's Property (Digital Assets etc) Act 2025—which formally recognized crypto as personal property—the judge found it does not override the precedent limiting conversion to physical objects.
Alternative Legal Routes Remain Open
The court allowed the case to proceed on grounds of unjust enrichment, breach of confidence, and constructive trust. This signals the legal system's effort to reconcile traditional frameworks with digital assets. If pursued further, the case could set a landmark for crypto asset recovery in British courts. Bitcoin traded at $75,139 as of press time.