£495 Million Lawsuit Filed for Recovery of Discarded Bitcoin

TLDR

• James Howells is suing Newport City Council for £495 million over a lost Bitcoin hard drive
• The hard drive, containing 7,500 bitcoins now worth ~$500 million, was mistakenly thrown away in 2013
• Howells has been trying to recover the drive from a landfill for over a decade
• The council has repeatedly denied excavation requests, citing environmental concerns
• Howells believes there’s an 80% chance the data can be recovered if the drive is found

In a case that highlights the potential perils of cryptocurrency storage, James Howells, an IT engineer from Newport, Wales, has filed a lawsuit against Newport City Council.

The legal action comes after more than a decade of unsuccessful attempts to recover a hard drive containing 7,500 bitcoins, which Howells accidentally discarded in 2013.

The hard drive, now estimated to be worth over $470 million at current bitcoin prices, was mistakenly thrown away during a routine cleanup.

Howells realized his error shortly after, but by then, the drive had already been sent to a local landfill site.

Since the incident, Howells has been on a mission to recover his lost fortune.

He has repeatedly approached the Newport City Council with proposals to search the landfill, but his requests have been consistently denied. The council cites environmental and cost concerns as the primary reasons for their refusal.

According to court documents seen by Walesonline, Howells is seeking £495,314,800 (approximately $647 million) in damages.

This figure reflects the peak valuation of his lost bitcoins earlier this year, underscoring the significant appreciation in value since the hard drive was discarded.

Howells has not been deterred by the council’s rejections. He has assembled a team of experts, including the council’s former head of landfill, to develop a comprehensive plan for excavating the site.

The proposed operation, estimated to cost around £10 million, would be funded entirely by Howells and his investors, ensuring no financial burden on the council.

In an effort to incentivize cooperation, Howells has offered the council a 10% share of any recovered bitcoin.

“I’m still allocating 10% of the value for the council even though they have been problematic throughout,”

Howells stated. He added that this could amount to £41 million based on current rates, with the potential for much more in the future.

The mishap occurred in 2013 when a miscommunication with Howells’ then-partner led to the hard drive being accidentally thrown away.

At the time, the bitcoins were worth less than £1 million. Howells recalled the incident, explaining that he had intended to double-check the contents of the bin bag but was unable to do so before it was disposed of.

Since then, Howells has dedicated himself full-time to the recovery effort, giving up his IT job and securing investors to fund the operation.

He now believes there is an 80% chance that the data on the hard drive can be recovered if it is located.

Despite the challenges, Howells remains determined. “It is what it is. I could spend the rest of my life working nine-to-five and thinking about it every day.

I might as well spend my time trying to recover this simple piece of metal,” he said.

The case has drawn attention to the risks associated with storing cryptocurrencies and the potential consequences of losing access to digital assets.

It also raises questions about the responsibilities of local authorities in such unique situations.

As the legal battle unfolds, it remains to be seen whether Howells will be granted permission to search for his lost fortune or if the bitcoins will remain buried in the Newport landfill.

The outcome of this case could have significant implications for similar situations in the future, as the value of cryptocurrencies continues to fluctuate and digital asset recovery becomes an increasingly relevant issue.