Chinese Court Treats Bitcoin as Property, Jails Man for More Than 10 Years Over Theft of 107 BTC Using Memorized Seed Phrase
Although China continues to restrict virtual-currency trading, its courts may still recognize such assets as property. In July 2023, a man surnamed Feng asked an acquaintance surnamed Zhang to help handle 117 Bitcoin. While Feng was setting up a wallet, Zhang memorized 11 seed words and the first letter of the final word, then reconstructed the full seed phrase and gained control of the assets. The case highlights the human risks associated with self-custody wallets.
Zhang later transferred 107 Bitcoin and converted more than 660,000 yuan into cash. The Licang District People's Court in Qingdao ruled that Bitcoin has economic value and can be controlled exclusively, making it subject to theft. On April 28, 2025, the court sentenced Zhang to 10 years and nine months in prison and fined him 100,000 yuan. The Qingdao Intermediate People's Court rejected his appeal on November 10 of the same year and upheld the original ruling.
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The history behind this eventUK High Court Hears $172 Million Bitcoin Theft Case Involving CCTV Capture of Hardware-Wallet Seed Phrase
UK resident Ping Fai Yuen alleges that his estranged wife, Fun Yung Li, used CCTV cameras in their home to capture the 24-word seed phrase for his Trezor hardware wallet, enabling her to reconstruct the wallet and transfer its assets. The case highlights the physical-surveillance risks associated with self-custody and tests whether traditional UK property law can effectively recover digital assets such as Bitcoin.
The King’s Bench Division of the High Court of England and Wales issued a ruling on March 10, 2026, allowing the case to proceed to trial. Yuen alleges that 2,323.28423347 Bitcoin were transferred to 71 addresses on August 2, 2023. The assets were worth nearly $60 million at the time and are now estimated at about $172 million. Justice Cotter also said the claimant had a “very high” likelihood of succeeding.
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