UK Court Hears Allegations of $176M Bitcoin Theft Using CCTV to Steal Seed Phrase

A man allegedly had 2,323 Bitcoin stolen by his own wife. That is over $176 million gone in crypto theft.

She reportedly used a security camera to record him entering his seed phrase. That is it. The most fundamental piece of Bitcoin security, a string of words written on paper, was the only thing standing between him and a $176 million loss.

A UK High Court is now hearing the case.

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How the Alleged Attack Worked: CCTV, a Staged Visit, and 12 Words

A seed phrase is the master key to everything in a crypto wallet. 12 to 24 words. Anyone who has them can drain the entire wallet from anywhere in the world.

According to court documents, Fun Yung Li and her sister visited Ping’s home on October 15, 2023. During that visit they allegedly used a concealed camera to film him entering his seed phrase and access codes into his Trezor hardware wallet.

Ping’s daughter tipped him off weeks later, having overheard discussions about the plot. He installed hidden audio recording equipment and claims to have captured Fun discussing the theft and how to move large sums without triggering bank or law enforcement scrutiny.

https://twitter.com/0xSweep/status/2033727813854036221?ref_src=twsrc%5Etfw” rel=”nofollow” target=”_blank

On December 21, 2023, Chainalysis confirmed the funds were split across 17 separate wallets. Nothing has moved since.

Here is the number that puts it all in perspective. The 2,323 BTC were worth around $4.3 million at the time of the alleged theft. By early 2025 the same coins were worth over $176 million. The alleged crime became exponentially more consequential simply because Bitcoin kept rising.

Police arrested Fun Yung Li, confiscated cold wallets and watches, then released her on bail. They later said no further action would be taken pending new evidence. That pushed Ping to civil court.

In November 2024 he applied for an asset preservation injunction to freeze the crypto and declare his ownership. Justice Cotter found a high probability of success and recommended an expedited trial. It is now scheduled for June 2026.

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