UK Court Allows $172M Bitcoin Theft Case as Husband Accuses Wife of Stealing Crypto via CCTV

• A UK court allows the $172M Bitcoin theft case between husband and wife to go to trial.
• The wife allegedly used CCTV to access the wallet recovery phrase and transfer 2,323 BTC.

A High Court of England and Wales judge has allowed a lawsuit involving the alleged theft of 2,323 Bitcoin to move forward. The case is valued at around $172 million, based on current prices.

Claim of Secret access to the crypto wallet 

According to court filings, Yuen claims that his wife used home CCTV cameras to secretly record and obtain the recovery phrase of his hardware wallet. A recovery phrase is a 24-word password that gives full access to a crypto wallet. However, anyone who knows the recovery phrase can access and move the funds. Yuen claims the Bitcoin was transferred in August 2023 without his consent.

The stolen Bitcoin, worth about $60 million at the time, has since increased in value to around $172 million. The funds were moved through several transactions and are now spread across multiple blockchain addresses. According to the court, the Bitcoin has not been moved since December 2023.

The wife asked the court to dismiss the case. She argued that the main legal claim used by her husband applies only to physical property. The judge agreed with this point. However, the court said the case can continue under other legal claims. The case also includes a personal conflict between the couple. Yuen admitted in court that he assaulted his wife after discovering the alleged transfer. He later pleaded guilty to assault-related charges in 2024.

This case shows how the courts are learning to deal with crypto-related disputes. These laws are designed for the physical assets, which is a very much a challenge to the digital assets. The final decision in the case will be important for future legal cases.

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