UK High Court Hears Case of $176M Bitcoin Theft Allegedly Carried Out With Hidden Camera

A legal battle unfolding before the UK High Court centers on the alleged theft of 2,323 Bitcoin — currently valued at approximately $176 million — in a case that highlights human vulnerability rather than technical weakness as the primary security risk in crypto self-custody ^[1].

The claimant, Ping Fai Yuen, alleges that his estranged wife, Fun Yung Li, and her sister obtained access to his hardware wallet by secretly recording his seed phrase using a hidden camera or recording device. Despite the hardware wallet being designed to keep private keys entirely offline, the seed phrase alone was sufficient to reconstruct the wallet on a separate device and transfer all funds without ever accessing the original hardware ^[1].

Yuen reportedly became aware of the alleged scheme after a warning from his daughter, and subsequently captured audio recordings he claims document conversations about moving the funds. The Bitcoin was then distributed across 71 separate wallet addresses — a tactic that complicates tracking and recovery efforts. No further blockchain activity has been recorded since December 21, 2023 ^[1].

Presiding Justice Cotter noted that the claimant had demonstrated a very high probability of success, though no final ruling has been issued. Authorities are said to have seized devices and cold wallets as part of the ongoing investigation ^[1].