UK High Court Hears $172 Million Bitcoin Theft Case Involving CCTV Capture of Hardware-Wallet 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.

Plaintiff Ping Fai Yuen alleges that his estranged wife, Fun Yung Li, and her sisters used home surveillance footage to obtain the 24-word seed phrase for a Trezor hardware wallet in 2023. The case involves not only a marital property dispute but also questions over how UK law classifies digital assets such as Bitcoin and what remedies apply.

On March 10, 2026, Judge Cotter of the High Court of England and Wales’ King’s Bench Division dismissed the conversion claim but allowed other property claims to proceed. The disputed 2,323.284 Bitcoin was transferred to 71 addresses on August 2, 2023, and is now valued at about $176 million. The addresses have remained inactive since December 21 that year, and Yuen says he has recordings of his wife discussing the transfer of the funds.

Qian Zhimin illegally raised more than 40 billion yuan from over 128,000 investors through Tianjin Lantian Gerui between 2014 and 2017, converting some of the proceeds into Bitcoin. London’s Metropolitan Police seized about 61,000 Bitcoin in 2018. Whether victims should be compensated for their original principal or receive assets reflecting Bitcoin’s appreciation has implications for cross-border asset recovery and digital-asset ownership rights.

In March 2026, Candey, representing more than 5,700 victims, challenged the compensation plan in the UK High Court. The 61,000 Bitcoin were worth about £3.2 billion ($4.3 billion) at the time. About 16,000 people joined the civil claim by the May 22 registration deadline. The court held a three-day hearing from July 7 to 9 to consider whether UK or Chinese law should apply, but has yet to rule.