A Welsh Bitcoin Investor Legal Threat Over 8,000 Lost Coins: $557M Claim for Buried Hard Drive

By Tsunami 09/11/23 9:54 AM

James Howells, a Welsh Bitcoin investor, is on a relentless quest to recover 8,000 Bitcoins he accidentally discarded a decade ago, now valued at an astonishing $557 million. This quest has brought him into a tense standoff with the Newport City Council (NCC), which has consistently denied his requests to excavate the landfill site where he believes his lost cryptocurrency resides.

A Costly Mistake

The story dates back to 2013 when Howells, in an unfortunate twist of fate, unknowingly discarded his Bitcoin cold wallet while cleaning out his old office. At that time, these 8,000 Bitcoins were worth £446 million, and despite the volatility of the cryptocurrency market, they remain incredibly valuable, with a current estimated worth of roughly £166 million ($207 million).

A Decade-Long Battle

For a decade now, Howells has been engaged in a relentless campaign to retrieve his lost fortune. His persistent requests to dig up the landfill and search for his Bitcoin treasure have been repeatedly denied by the Newport City Council. The council has cited environmental concerns and the limitations of their environmental permit as reasons for rejecting his pleas.

In a recent twist, Howells is preparing to escalate his battle by taking legal action against the council. His proposed lawsuit seeks £446 million ($557 million) in damages, a sum equal to the highest recorded price of his lost Bitcoin. Such a lawsuit has the potential to financially cripple the council, a threat that Howells does not take lightly.

Threatening Bankruptcy

James Howells is not mincing his words. He has explicitly warned that the Newport City Council could face the same fate as the recently declared bankrupt Birmingham City Council. His intent to pursue legal action and the substantial damages he seeks to claim could indeed have dire financial consequences for NCC.

“I’ve tried everything I can for 10 years, they didn’t want to play ball, so now we have to go down the legal route,” Howells explained his decision.

The Ultimatum

On September 4, Howells sent an open letter to the council, demanding that he be allowed to commence the landfill excavation work by September 18. Alongside this demand, he is also requesting a judicial review to scrutinize the council’s decisions concerning the Bitcoin landfill saga.

The Council’s Stance

The Newport City Council remains unwavering in its stance. A council spokesperson reiterated their position that excavation of the landfill is not feasible under their environmental permit and would have adverse environmental repercussions for the area. They also expressed a desire to prioritize the delivery of essential services to the residents of Newport, implying that this ongoing dispute has diverted valuable resources.

A Controversial Proposal

In 2022, Howells attempted to sway the council by making a set of promises related to the recovered Bitcoin. He pledged to give £50 to every Newport resident, install crypto-based terminals in local shops, and create renewable energy infrastructure to support a community-owned Bitcoin mining facility. While these pledges could potentially benefit the community, they might not sit well with residents if the legal battle results in the council’s bankruptcy.

The Taxpayer’s Perspective

As this saga continues, the question arises: Is it reasonable to spend substantial sums of taxpayer money to prevent Howells from pursuing his quest to recover his lost Bitcoin? Howells himself raised this question, emphasizing the importance of fiscal responsibility in the current economic climate.

The James Howells vs. Newport City Council saga remains an ongoing and high-stakes battle that could have far-reaching consequences for both parties involved. As Howells and the council brace for a legal showdown, the fate of the elusive 8,000 Bitcoins remains uncertain, and the residents of Newport anxiously await the outcome.

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