James Howells, a computer engineer from Newport, Wales, is embroiled in a legal dispute with the local council over access to a landfill where he claims a hard drive containing 8,000 bitcoins is buried. Now worth approximately £600 million (€781 million), the bitcoins were mistakenly discarded in 2013. Howells is seeking either access to the site or £495 million (€597 million) in damages.
The case, currently before the High Court, has sparked debate over property rights, environmental concerns, and cryptocurrency’s legal complexities.
The Lost Bitcoin Fortune
Howells, an early adopter of Bitcoin, mined the cryptocurrency in 2009 when its value was negligible. At the time, he transferred the digital wallet to a hard drive, storing it safely—until a mix-up resulted in its disposal. His then-partner mistakenly included the hard drive in a rubbish bag taken to the Docksway landfill.
Since discovering the error, Howells has made multiple attempts to recover the device. The landfill, however, spans over 1.4 million tonnes of waste, making the task monumental. To fund the operation, Howells secured backing from a US hedge fund in exchange for a share of the recovered fortune.
Council Opposition
Newport City Council has consistently denied Howells access to the landfill, citing legal and environmental constraints. According to the council, property discarded at landfill sites legally belongs to the local authority. Additionally, permits governing the site forbid excavation that could harm the environment or breach public health regulations.
Council barrister James Goudie KC argued that allowing Howells to proceed would undermine the council’s legal obligations. “Bitcoin enthusiasts are not above the law,” he stated, emphasising the council’s duty to act in the public interest.
The council also criticised Howells’ offer to donate 10% of the recovered Bitcoin to the community, branding it an attempt to “bribe” officials. Goudie described the proposal as encouraging the council to “play fast and loose” by pursuing a share of the fortune.
Legal Arguments
Howells’ legal team, led by Dean Armstrong KC, has dismissed the bribery allegations as “unfortunate and pointless.” They argue that the hard drive remains Howells’ property and that denying him access would constitute a grave injustice. The team also contends that the search would not be a “needle in a haystack” scenario, thanks to expert planning and a narrowed search perimeter informed by former landfill workers.
Armstrong stressed that the court must decide ownership rights and whether the council has a legal duty to grant access. “We seek, plainly and candidly, a declaration of rights over the ownership of the Bitcoin,” he stated, adding that refusing to proceed to a full trial could set a harmful precedent for property rights.
Environmental and Practical Challenges
Excavating a landfill of this scale poses significant logistical and environmental challenges. The council has warned that digging up tonnes of waste could release hazardous substances, disturb local ecosystems, and create public health risks.
Howells has countered these claims with assurances that the operation would be carried out responsibly. He has proposed a detailed plan involving a specialist team and advanced technology to mitigate environmental risks.
A Decision Pending
The High Court hearing focused on whether Howells’ claim should proceed to a full trial. Judge Keyser KC reserved his decision, leaving the case in legal limbo.
The case raises broader questions about cryptocurrency ownership and the legalities surrounding lost digital assets. Howells’ situation is not unique, as others worldwide have faced similar dilemmas involving misplaced cryptocurrency keys.
For now, Howells’ Bitcoin wallet remains a tantalising treasure buried under Newport’s waste—a vivid illustration of both the promises and pitfalls of the digital age. The High Court’s forthcoming decision will determine whether the search for this modern-day fortune will continue or be abandoned entirely.
