Man Who Says He Threw Away Hard Drive With 8,000 BTC Sues City Council for $647 Million

Man Who Says He Threw Away Hard Drive With 8,000 BTC Sues City Council for $647 Million

N
News Editor 01
2026-07-23 06:50:14
James Howells says a hard drive containing 8,000 BTC was discarded in 2013 and is now buried in a Newport landfill. He is suing the city council for about $647 million while also seeking permission to excavate the site.
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James Howells, an IT worker from Newport, Wales, says a hard drive holding 8,000 BTC was accidentally thrown away in 2013. At the Bitcoin price cited in the source, about $64,296 per coin, the missing stash is now worth more than $514 million, turning an old mistake into a high-profile legal fight.

Lawsuit targets Newport City Council and seeks more than damages

Howells has filed a lawsuit against Newport City Council, claiming roughly $647 million in damages. He argues that the council has repeatedly refused his requests to excavate the landfill where the drive was allegedly discarded. His stated goal is not limited to compensation. He also wants permission to search the site.

To make the proposal more attractive, Howells has said he would cover the full cost of the excavation. He also proposed giving 10% of any recovered Bitcoin to the local government, a share that could be worth tens of millions of dollars at current prices.

Council pushes back over environmental and practical risks

Newport City Council has rejected the plan and described the legal case as “weak.” Its objections focus on environmental impact and the difficulty of the operation itself. The landfill section in question contains thousands of tons of waste, and excavation could raise issues such as methane gas emissions and possible groundwater contamination.

There is also the basic problem of locating one hard drive in a huge disposal site. Even if it were found, years of exposure could have left the hardware corroded or otherwise damaged. That creates a second layer of uncertainty: recovery depends not only on finding the device, but on whether the data is still readable.

Howells proposes AI-powered robots and recovery specialists

Howells says he has built a recovery plan that relies on AI-powered robotic devices and specialist teams. According to the source, he has assembled engineers, environmental experts, and data recovery professionals to support a controlled search process. His position is that the operation can be handled methodically, with risks reduced through equipment and planning.

He also argues that a successful recovery could generate a meaningful economic upside for Newport. That claim has become part of his broader effort to persuade the council to approve excavation.

Bitcoin’s price surge turned a discarded drive into a huge asset dispute

When the drive was thrown away in 2013, Bitcoin was still in an early stage and trading far below current levels. The sharp increase in value over the years changed the scale of the loss dramatically. What may once have looked like a discarded piece of hardware is now tied to one of the larger missing crypto fortunes on record.

The case is scheduled to be heard in December. The court will be asked to weigh Howells’ claims against the council’s environmental concerns and its refusal to permit excavation at the landfill.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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