Highlights:
- James Howells seeks £495 million after accidentally discarding a hard drive containing 8,000 Bitcoin.
- Newport City Council denies excavation requests, citing environmental concerns as their main reason.
- Howells’ legal team argues modern technology could safely recover the hard drive.
The 39-year-old James Howells, an IT engineer from Newport, has filed a lawsuit against Newport City Council in the United Kingdom, seeking £495 million (approximately $647 million) in damages. This legal action stems from his accidental disposal of a hard drive containing 8,000 Bitcoin.
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Howells, an early Bitcoin miner since 2009, lost access to his cryptocurrency after accidentally discarding a hard drive during a household cleanup in August 2013. He accidentally put the drive with his Bitcoin’s private key in a bin bag. This bag ultimately reached Newport’s recycling center. At that time, the Bitcoins were valued at approximately £1 million (about $1.3 million). Today, their value has skyrocketed to nearly £500 million.
🇬🇧James Howells, an IT engineer, is suing Newport City Council for $647 million after the council blocked his attempts to recover a hard drive containing 8,000 $BTC.
The drive was mistakenly discarded in 2013. Despite offering the council 10% of the recovered value, the council… pic.twitter.com/D7nTDUHECw
— Satoshi Talks (@Satoshi_Talks) October 12, 2024
Attempts to Recover and Legal Action
According to WalesOnline, Howells has made multiple attempts to recover the hard drive from the local landfill. However, Newport City Council has repeatedly denied his excavation requests, citing environmental concerns as the main reason for their refusal.
Howells has assembled a team of legal experts to file a court claim, which is set to be heard in December. Howells’ legal team contends that modern technology, such as AI-assisted search tools, can safely recover the hard drive.
They highlight successful landfill redevelopment projects, arguing that excavation could enhance Newport’s waste management practices. Moreover, he has offered the council 10% of the recovered Bitcoin’s value if the hard drive is found, but the council remains resolute in its decision.
He previously said:
“Digging up a landfill is a huge operation in itself. The funding has been secured. We’ve brought on an AI specialist. Their technology can easily be retrained to search for a hard drive. We’ve also got an environmental team on board.”
Landfill Violations and Recovery Challenges
The landfill has been cited for violations of its environmental permit, including elevated levels of asbestos, arsenic, and methane. The council contends that excavating the site could pose risks to the surrounding area and insists that its operations adhere to strict monitoring protocols.
In 2022, Howells proposed an $11 million plan to recover the drive, potentially buried beneath 110,000 tons of waste. The plan required no financial contribution from the city, yet Newport City Council remains steadfast in its refusal, questioning the legal and technical feasibility of Howells’ proposal.
Howells said:
“Some experts believe that by the end of the year the price will rise to $25,000[0] per coin. That would make my hard drive worth £1.5billion. The council may be happy to leave that in a landfill but I’m not. They want me to go away and forget about it but how could anyone? Why should I back down? All I want is a chance to get my property back.”
Securely store hardware wallets and keep private keys offline to prevent similar situations. Additionally, backup recovery phrases should be in multiple safe locations.
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