Imagine losing access to 7,500 bitcoins—now worth nearly $500 million—because of a simple mistake. That’s exactly what happened to James Howells, an IT engineer from Newport, Wales. In 2013, he accidentally threw away a hard drive that contained his Bitcoin wallet, and he’s been fighting to recover it ever since. After years of trying, Howells has now taken legal action against Newport City Council in hopes of finally getting access to the landfill where the hard drive is buried, as first reported by WalesOnline.
Back in 2013, Bitcoin wasn’t nearly as valuable as it is today, so the loss of 7,500 BTC didn’t seem as devastating at the time. However, with the value of Bitcoin skyrocketing over the past decade, the stakes have changed. Howells has spent years asking the council for permission to excavate the landfill, but they’ve repeatedly denied his requests, citing environmental concerns.
But Howells hasn’t given up. He’s put together a team of experts and secured investors for the £10 million (≈$13 million) excavation project. He’s even offered to fund the entire operation himself at no cost to the council. To sweeten the deal, he’s offered the council 10% of the recovered bitcoins—around $48 million based on today’s prices. Despite this, the council has remained firm in its refusal.
Howells believes that had the council cooperated earlier, Newport could have benefited greatly from the recovered bitcoins. “If they had spoken to me in 2013, this place would look like Las Vegas now. Newport would look like Dubai,” he remarked, frustrated by the missed opportunity.
How Do 7,500 Bitcoins End Up on an Old Hard Drive?
So, you might be wondering how someone’s Bitcoin can end up stored on an old hard drive, and why it’s even possible to still retrieve it after all this time.
Here’s how it works: When you own Bitcoin, what you’re actually holding is access to a private key. This key is what allows you to unlock and spend your bitcoins, which are recorded on the blockchain. Back in 2013, wallets were often stored locally on computers, rather than through today’s more common cloud-based or hardware wallets. Howells had his private key stored in a wallet file on his hard drive, which means that as long as the hard drive is found and the data is intact, the bitcoins can still be retrieved.
The bitcoins themselves aren’t on the hard drive—Bitcoin lives on the blockchain. What’s on the hard drive is the private key to access them. Without the key, you can’t spend the bitcoins. But if Howells recovers the hard drive and the key is still readable, those 7,500 bitcoins are his once again.
A Decade-Long Struggle
The mix-up that led to the hard drive being thrown away happened when Howells’ then-partner mistakenly discarded the wrong bin bag. At the time, Howells wasn’t too worried, assuming he’d double-check later to see if the right hard drive had been thrown out. But by the time he realized what had happened, the trash had already been taken away, and his Bitcoin wallet was buried in the landfill.
Since then, Howells has made recovering the hard drive his life’s mission. He left his IT job, secured funding, and gathered a team of experts to help with the recovery project. He believes there’s an 80% chance that the data on the hard drive can still be recovered if it’s found, and he’s confident that modern technology can safely dig up the site.
Despite his dedication, Newport City Council has repeatedly rejected his requests, stating concerns about the environmental impact of excavating the landfill. However, Howells’ team, which includes the former head of landfill for the council, insists they can carry out the excavation safely. They plan to use cutting-edge technology, including artificial intelligence, to locate the hard drive without disturbing too much of the site.
What Will Happen?
Howells is determined to keep fighting. “I could spend the rest of my life working nine-to-five and thinking about it every day, or I can focus on recovering this simple piece of metal,” he said. He’s putting everything he has into the recovery project, despite the toll it’s taken on his finances. Until the courts tell him otherwise, he’s not giving up.
For now, we’ll have to wait and see if Howells’ lawsuit will finally get Newport City Council to give him the green light to search for the hard drive. If he’s successful, it could be one of the biggest Bitcoin recoveries ever. And for Howells, it would be the end of a decade-long quest to recover his lost fortune.
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