Yuen v Li : So What if Digital Assets are Third Things?

Abstract

Yuen v Li is the first English decision to consider the legal treatment of digital assets since the Property (Digital Assets etc) Act 2025 was enacted. The case shows that recognising digital assets as possible ‘third things’ does little to settle what legal consequences follow. In particular, it leaves unresolved whether: (i) interference with digital assets should constitute conversion, a conversion‐like tort, or should attract some other form of liability; (ii) whether such liability should be strict or fault‐based; (iii) how such liability can be reconciled with the rights of those who own the physical devices and ledgers through which digital assets are accessed or maintained; and (iv) how damages should be assessed in volatile and highly manipulated crypto‐markets. This note argues that the central issue is not whether digital assets can be labelled property, but rather what rights that label creates, against whom, and on what terms.