The story of the British man who lost $725 million on a hard drive is both tragic and compelling. James Howells, a computer engineer living in Newport in the United Kingdom, has struggled for years to change his fate and recover his “treasure.” He even took the drastic step of suing Newport City Council as a last resort to retrieve the hard drive. However, a high court judge recently ruled against him.
The judge’s ruling. Howells claims to have lost a hard drive containing thousands of bitcoins in a Newport landfill back in 2013. After enduring years of bureaucratic challenges, he faced a major setback when Judge Keyser KC dismissed his lawsuit against Newport City Council on Thursday.
The man was seeking permission to dig up the landfill to recover the hard drive or, if that wasn’t possible, to receive compensation equivalent to the current value of the bitcoins, estimated to be around $725 million. The judge ruled that the lawsuit had “no realistic prospects of succeeding,” citing several concerns related to legalities, environmental issues, and safety in denying his request.
The legal dispute. The judge based his decision on the UK’s Control of Pollution Act of 1974, which states that waste delivered to a local authority becomes that authority’s property. Howells argued that this principle didn’t strip him of his rights to the hard drive that belonged to him.
However, the judge rejected this interpretation, asserting that the council has full authority over the landfill. Additionally, Howells’ claim was dismissed for exceeding the six-year statutory limit for bringing claims. He learned of the loss in 2013 but didn’t initiate legal proceedings until May 2024.
A bitcoin fortune. The hard drive allegedly contained the private key that would allow access to 8,000 bitcoins mined in 2009, when the cryptocurrency was just beginning to gain value. By 2013, when Howells realized the loss, the 7,500 bitcoins he claimed to have lost were worth around $7.5 million.
Over time, this case became a historical misadventure. Due to the exponential rise in the price of bitcoin, the current value of the “lost” cryptocurrencies exceeds $725 million. In his desperation, Howells even offered to share a portion of the proceeds with the council and the local community in exchange for permission to excavate. However, his proposal was rejected due to environmental and logistical risks. He even considered using robotic dogs in his efforts.
Context. The unfortunate incident occurred in August 2013. According to his account, Howells mistakenly confused the hard drive containing his bitcoins with an empty one and accidentally discarded it in a garbage bag. His then-partner later took the bags to a landfill, where they were mixed in with 350,000 tons of compacted waste.
Since then, Howells has been trying to recover the device, securing funding and specialized equipment for a controlled excavation. A technical report estimated that the hard drive could be buried in an area of 21,500 square feet, under 10,000 to 15,000 tons of waste.
Environmental (and legal) concerns. Newport City Council has consistently argued that excavating the landfill could release toxic substances that might pose risks to public health and the environment. Additionally, this operation would require a new environmental license from the Natural Resources Body for Wales, a complicated and costly process.
These factors ultimately played a decisive role in the council’s refusal to allow the excavation. The judge upheld this position in his ruling, stating that the risks outweigh any potential benefits, particularly highlighting the virtually non-existent chance of success.
A frustrated man. Howells expressed deep disappointment following the judge’s decision. He feels he was never given the opportunity to fully explain his case during the trial. In his words, “This ruling has taken everything from me and left me with nothing. It’s the great British injustice system striking again.” His ex-girlfriend, who disposed of the bags in the landfill, also lamented the situation and expressed her fatigue over the constant media attention.
Despite the challenges, Howells believes the hard drive could still be functional if recovered. In 2021, he claimed that the drive is coated with an anti-corrosion layer that might allow it to withstand landfill conditions. His plan, which ultimately failed, involved submitting the device to data recovery specialists in an attempt to access the private key.
Meanwhile, there’s one unsettling fact to consider: The price of Bitcoin has never been higher.
Image | Traxer
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