A man who accidentally threw away £600m worth of Bitcoin has conceded defeat for the first time, following a judge’s decision to reject his attempt to excavate the lost treasure. Describing the failed legal effort as ‘gut-wrenching’, James Howells, 39, admitted he’ll be haunted by thoughts of what could have been for the rest of his life.
The would-be treasure hunter had taken legal action against Newport Council in Wales for denying him permission to dig up the computer equipment necessary to access his 8,000 Bitcoins, now valued at over £635M. A decade ago, his then-partner discarded a black bin bag containing the hard drive that held the key to his Bitcoin fortune, which ended up in a local landfill site.
Howells has since been embroiled in a years-long struggle for the right to recover it. However, last week, his hopes were dashed when Cardiff High Court dismissed his case.
The Council said digging for the hard drive would have a severe environmental impact
Reflecting on the outcome, Howells acknowledged the harsh reality that his prolonged fight is effectively ‘game over’. He said: “I am honestly so disappointed – I thought at the very least I deserved to have my full say in court with a full trial with all details put onto the centre stage. I thought at least I’d get an opportunity in court but all we got was a one day hearing where I did not even get to speak in any way.”
Howells criticised the swift dismissal of his case: “The case has been thrown out at the first hurdle and swept under the carpet to protect the local council. It was always going to be a difficult uphill struggle. I believe in my case but I did not think there would be any chance of fairness.”
He continued: “Unless someone has a change of mind it is a dead stick – game over. The fat lady is singing. The council own the land, they own the permission and they have the power to change if they want to. I understand the environmental concerns and they are all valid. But they could be overcome and I would do everything to ensure they are. I have always been fully committed to deal with that in the most professional manner possible. It feels like the end of the world for me. I am now stuck with it and can not escape it. I am stuck with it for life.”
Howells explained that the value of Bitcoin is ‘only going to go up’. He said: “It is around £100k today. When it reaches £500k and the coins are worth billions maybe then someone will come asking me if I want to do the dig.”
Howells’ former partner accidentally threw away the hard drive at their home in Newport 10 years ago
In December last year, Newport Council asked a High Court judge to strike out his legal action to either access the landfill or get £495m in compensation. Judge Keyser KC said there were no ‘reasonable grounds’ for bringing the claim and ‘no realistic prospect’ of succeeding at a full trial.
James said one omission from the judge had been ‘extra painful’ as he refused to acknowledge him as the owner of the coins – taking away the option to ‘tokenise’ them in the future. He said: “The coins have never moved. It would become like a vault where the gold is stored and I would create a new asset in order to trade in public. The value of the new crypto would be linked to the wallet address forever. I was hoping to salvage something from this. Using tokenisation to turn to the coins into a new asset. Unfortunately the judge refused to grant me ownership of the bitcoins as part of the order.”
He continued: “Newport District Council own the physical harddrive but they don’t own the Bitcoins. But the judge didn’t say in his ruling ‘James Howells owns the Bitcoin’ which was the stance originally agreed even with the council. That would have given me some hope for the future – a small glimmer of hope that although I could not do the dig I could re-focus and work on the tokenisation project. The judge just ripped all that out. It was gut-wrenching to be honest. “
The Council is reportedly ‘strongly resisting’ any appeals from Howells
James mentioned he now has 21 days to appeal but noted that he’d need to request permission from the same judge and present a robust legal argument. He went on to say: “So it is game over. I’ve not given up and will never surrender but it is looking pretty bleak. I don’t know what else to do. Maybe Donald Trump could help make something happen. I would certainly cut Trump in on the deal if he could help. I am appealing to him and anyone else who can help sort this madness. I’m half joking of course but it would be great if he did.”
James had put together a team of legal experts who claimed they could retrieve a valuable asset at no cost to the public purse, while the council argued it would have a ‘negative environmental impact’. If the council’s ‘strike out’ application hadn’t been approved, it would have led to a full two-week hearing within six months. James also promised to give back ten per cent of the proceeds to the local community, an offer that the council’s lawyers labelled a “bribe”.
James expressed his frustration with the council’s refusal to engage, believing they missed the chance to transform Newport into the ‘Dubai or Las Vegas’ of the UK. He stated: “Despite being thrown out by my ex partner, which was a mistake and was without my permission or consent, I still own the intellectual digital property located on the hard drive.” Howells felt entitled to either recover the property at his own expense or be compensated by the landowner for its value. He said: “I would much rather say let’s have a conversation and let’s dig and work together amicably – but they don’t want to know.”
He also lamented the lost opportunity for investment in the area, noting that if Bitcoin reached £125k, the value could surpass a billion pounds. The council has repeatedly brushed off Mr. Howells’ requests, affirming the negative environmental repercussions of such an excavation.
The Council said: “Newport City Council has been contacted multiple times since 2013 about the possibility of retrieving a piece of IT hardware said to be in our landfill site. The council has told Mr. Howells multiple times that excavation is not possible under our environmental permit, and that work of that nature would have a huge negative environmental impact on the surrounding area. The council is the only body authorised to carry out operations on the site. Mr. Howells’s claim has no merit, and the council is vigorously resisting it.”
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