While the theft itself remains disputed, the legal battle turned on a technicality of English common law. Yuen brought claims for strict liability tort, alleging wrongful interference with goods and direct interference with personal property.
Judicial Ruling on ‘Doctrinal Leaps’Justice Cotter agreed, striking out the claims for conversion and trespass. His judgment highlighted two key points: first, that conversion has historically been rooted in interference with physical possession, and extending it to intangible assets would not be a “modest refinement” but a “doctrinal leap.”
Second, while a recent act confirmed that digital assets constitute a third category of personal property, Parliament had not intended for this to automatically extend to physical torts. Cotter cited the Supreme Court’s decision in OBG v. Allan (2008) as binding precedent, restricting conversion to tangible property.
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FAQ What was the key ruling of the High Court regarding bitcoin? The High Court clarified that while bitcoin is property, it cannot be subject to traditional legal claims like physical goods. What case prompted this legal clarification? The ruling arose from the case of Ping Fai Yuen v. Fun Yung Li, concerning the alleged theft of 2,323 bitcoins worth approximately $172 million. What implications does this ruling have for digital asset theft victims? Victims may find it more challenging to recover stolen bitcoin through traditional tort claims but can still pursue ownership recovery. How did Justice Cotter justify this ruling? Justice Cotter emphasized that extending torts designed for tangible goods to intangible digital assets would require significant legal changes, rather than minor adjustments.
