Bitcoin Hard Drive Dispute: Newport Man Seeks Landfill Access for £600m Digital Wallet
James Howells is embroiled in a legal battle with Newport council over retrieving a hard drive containing Bitcoin he claims is now worth approximately £600 million. The case has reached the High Court, with Howells seeking either access to the Docksway landfill site or £495 million in compensation.
Howells, an early cryptocurrency adopter, accidentally had his Bitcoin-containing hard drive discarded by his former partner in 2013. The digital wallet was created when Bitcoin was worth a minimal fraction of its current value. Since then, Howells has been attempting to gain permission to excavate the landfill site to recover the valuable hardware.
During the recent court hearing, the council’s barrister, James Goudie KC, argued that Howells is essentially trying to “bribe” the local authority. Howells had offered to donate 10% of the Bitcoin’s value to the local community, which Goudie suggested was an attempt to encourage the council to “play fast and loose” with the situation.
The council maintains several key legal arguments against Howells’ claim:
1. There is “no duty” to excavate the landfill site at his request
2. Environmental permits forbid disrupting the landfill area
3. Property deposited at landfill sites legally belongs to the local authority
4. Significant time has passed since the hard drive was discarded
Goudie emphasized that “Bitcoin enthusiasts are not above the law” and that the council is bound by legal constraints.
Conversely, Howells’ legal team, represented by Dean Armstrong KC, argued that the search would not be like finding a “needle in a haystack”. They claim considerable expertise has been developed to narrow the search area and that the court should be cautious about potentially causing “grave injustice” by preventing a full trial.
Armstrong stated they are seeking a “declaration of rights over the ownership of the Bitcoin” and believe the case merits a comprehensive legal examination.
Following the hearing, Judge Keyser KC reserved his decision, indicating the complexity of the legal arguments presented. The case hinges on intricate questions of property ownership, environmental regulations, and the unique circumstances surrounding cryptocurrency assets.
The potential value of Howells’ lost Bitcoin – now estimated at £601 million – adds significant weight to the dispute. This case could potentially set a precedent for how similar cryptocurrency recovery attempts are handled legally.
The hearing was specifically to determine whether the case should proceed to a full trial, with both sides presenting compelling arguments about the feasibility and legality of excavating the landfill site to recover the valuable digital asset.
A final decision is pending, leaving Howells and the Newport council awaiting the judge’s ruling on this unprecedented legal challenge.
