The story of a lost Bitcoin hard drive and a $646 million lawsuit

A man is suing Newport Council for nearly £500 million to recover 8,000 Bitcoin (BTC) he says he lost due to a mix-up that resulted in his hard drive being disposed of at a recycling center in 2013.

James Howells has brought the lawsuit as a “last resort” after more than ten years of what he describes as being “largely ignored” by the council.

The Lost Bitcoin

According to local media reports, Howells is seeking just under half a million pounds, which translates to $646.4 million. This represents the highest valuation of its Bitcoin holdings earlier this year, when the cryptocurrency hit an all-time high (ATH) of $73,737.

However, he stressed that the amount does not reflect the real situation. Instead, he intends to “take advantage” of the council to allow the excavation of his landfill to avoid a legal battle.

The 39-year-old has assembled a team of experts ready to carry out a £10m ($13m) dig at no cost to the council. It is also offering to share 10% of the value of the recovered coins, which it estimates could reach $53.5 million at current prices.

Howells says he lost the hard drive during a home office cleanout due to miscommunication with his then-partner.

As an early adopter of Bitcoin, he claims to have mined 8,000 coins at minimal cost. However, their value has skyrocketed since the incident, and if some of the predictions made by industry insiders come true, the coins could be worth billions in the future.

Council’s response

Since losing access to his Bitcoin, Howells has pursued recovery efforts full-time after quitting his IT job. The court filing states that the missing hard drive is located in “Cell 2 – Area 2” at the Docksway landfill, with experts estimating an 80% chance of data recovery. They suggest the excavation could take 18 to 36 months, followed by a year of environmental remediation.

Their team of experts claims that they can “safely dig” the site with the help of AI. They also pledge to help modernize the landfill, which has repeatedly failed to comply with its permit since 2020 due to excessive levels of hazardous waste. Despite this, Newport Council has allegedly ignored Howells’ overtures.

Meanwhile, the council’s lawyers argue that they are the legal owners of the hard drive since it was discarded, while his lawyers maintain that he never intended to abandon it.

The group characterized Howells’ claims as “weak” and claimed the excavation is prohibited by its environmental permit. They also stressed that it carries out strict environmental monitoring, and related allegations are attempts to distract from the frailties of its claims.

The case will be heard in court in December, with the Welshman vowing to continue trying to recover the hard drive until a judge officially arrests him.

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