£600m Bitcoin Dispute Over Landfill Access Denied by Judge

James Howells bitcoin

  • A judge dismissed James Howells’ lawsuit against Newport City Council, preventing him from searching a landfill for his lost Bitcoin hard drive.
  • The court ruled that the case had no chance of success, but Howells plans to take the matter to the Supreme Court.

A High Court judge has dismissed James Howells’ attempt to sue Newport City Council over access to a landfill site where he claims a hard drive containing 7,500 bitcoins, now valued at over £600 million, was mistakenly discarded in 2013.

Mr Howells, an early adopter of Bitcoin, had argued that his former partner had accidentally thrown away the device and sought permission to excavate the landfill or receive £495 million in compensation. However, the council requested the court to strike out his claim, citing legal and environmental concerns.

Judge Keyser KC ruled that there were no “reasonable grounds” for the claim and no “realistic prospect” of success in a full trial. The decision effectively ends Mr. Howells’ legal bid to recover the lost cryptocurrency.

Bitcoin’s Rising Value Increases Frustration

The court heard that Mr. Howells mined the Bitcoin in 2009 when the cryptocurrency held little value. As its worth surged in recent years, he assembled a team of experts to locate and retrieve the hard drive. He repeatedly sought permission from the council, offering it a share of the recovered Bitcoin, but the request was denied, reported CNF.

Newport City Council argued that once the hard drive entered the landfill, it became council property under existing waste disposal laws. It also pointed out that environmental permits prohibit excavation of the site, which contains over 1.4 million tonnes of waste. Mr Howells maintained that he had pinpointed the hard drive’s location within 100,000 tonnes of rubbish in a specific area.

The council’s legal representative, James Goudie KC, told the court that allowing excavation could set a problematic precedent. As mentioned in our previous news brief, He further argued that offering a 10% Bitcoin donation to the community was an attempt to persuade the council to bypass regulations for financial gain.

Howells Remains Committed to Fight for Lost Cryptocurrency

In a written judgment, Judge Keyser KC stated that even if the case proceeded to trial, it had no realistic chance of success. He saw no compelling reason to allow it to be heard further.

Outside the courtroom, Mr Howells expressed his disappointment but remained determined to continue his legal battle. He indicated he was willing to escalate the matter to the Supreme Court.

Meanwhile, Bitcoin’s value has surged by over 80% in the past year, with Mr Howells estimating that his lost holdings could be worth £1 billion by next year, reported CNF. However, without legal access to the landfill, the possibility of retrieving the hard drive remains uncertain.

The ruling marks the latest chapter in Mr Howells’ long-running attempt to recover his lost Bitcoin. Still, his multimillion-pound digital fortune remains buried beneath tonnes of waste.