Recovering Crypto Assets – Scotland And England Compared

Introduction

The case of Ping Fai Yuen v Fun Yung Li & Anor [2026] EWHC 532 (KB) has generated interest in legal circles because it concerns the law of conversion, and a claim by a husband against his estranged wife after 2,323 Bitcoin ended up in 71 different locations.

As the judge explained:

“The Claimant’s case is straightforward. At a time when divorce was contemplated his (now estranged) wife, the First Defendant, obtained his seed phrase and “stole” the Bitcoin; either acting alone or with her sister (the Second Defendant). She did so by covertly recording the Claimant to obtain the seed phrase.”

“[The] private key was contained in a “cold wallet” (i.e. not connected to the internet) on a physical device referred to as the “Trezor”. The Trezor was protected by a six-digit PIN, so that, even if it was physically stolen, the contents remained protected. However, any person with access to the Claimant’s “seed phrase” (a randomly generated set of 24 words) could use it to