A High Court judge has dismissed James Howells’ bid to recover a Bitcoin hard drive, worth approximately £598 million, that he claims was accidentally discarded in 2013. Mr. Howells had sought to sue Newport City Council for access to the landfill where he believes the drive is located or for £495 million in damages.
The Dispute
Mr. Howells argued that his former partner mistakenly threw away the hard drive containing his Bitcoin wallet, mined in 2009 when the cryptocurrency had little value. Over time, as Bitcoin’s value soared, the wallet’s worth skyrocketed.
He had proposed a detailed plan to locate the hard drive in the landfill, narrowing the search area to approximately 100,000 tonnes of waste out of the 1.4 million tonnes at the site. Mr. Howells even offered the council a share of the Bitcoin proceeds—estimated at 10%—if the recovery was successful.
However, Newport Council resisted, asserting that existing laws designated the hard drive as its property once it entered the landfill. The council also cited environmental restrictions that prohibit excavating the site.
Court Ruling
Judge Keyser KC ruled that Mr. Howells’ claim had “no reasonable grounds” and “no realistic prospect” of success in a full trial. The court also rejected Mr. Howells’ assertion that the council should consider his compensation request.
In a written judgment, Judge Keyser stated:
“I also consider that the claim would have no realistic prospect of succeeding if it went to trial and that there is no other compelling reason why it should be disposed of at trial.”
Mr. Howells’ Reaction
Mr. Howells expressed his disappointment with the decision, stating:
“The case being struck out at the earliest hearing doesn’t even give me the opportunity to explain myself or seek justice. I’ve been engaging with the council for 12 years, and now I’m being told it’s too late—it feels like a kick in the teeth.”
He added, “This ruling has taken everything from me and left me with nothing. It’s the great British injustice system striking again.”
Council’s Argument
James Goudie KC, representing Newport City Council, argued that granting Mr. Howells access or considering his offer to share the Bitcoin proceeds would effectively encourage the council to act irresponsibly by “signing up for a share of the action.”
The council emphasized that its environmental permits strictly forbid excavating the landfill, citing potential ecological risks.
The Value of Bitcoin
Bitcoin, often referred to as a cryptocurrency, is a form of digital money with no physical equivalent. While it can be used to purchase goods and services, its acceptance remains limited, and some countries, like China and Saudi Arabia, have banned it outright.
Since Mr. Howells mined the Bitcoin in 2009, its value has soared dramatically, rising by over 80% in 2024 alone. He speculates that by 2025, the Bitcoin on the discarded hard drive could be worth as much as £1 billion.
Despite his efforts, Mr. Howells’ hopes of recovering the hard drive—and the fortune it holds—appear to have reached a dead end. The court’s decision underscores the legal and environmental challenges surrounding his case, leaving Mr. Howells to lament what might have been.
