James Howells, an IT engineer from Newport, Wales, is suing the Newport City Council for an eye-watering sum of 495 million British pounds (around $647 million). This lawsuit follows years of ongoing legal battles and rejected requests to dig up a local landfill. At the heart of this battle is a lost hard drive that, in 2013, Howells accidentally threw away during a routine household clearout. The hard drive contains 8,000 Bitcoin, which has since skyrocketed in value to nearly half a billion pounds.

The Lost Bitcoin

In 2013, Bitcoin was still a relatively niche asset, and the 8,000 BTC on Howells’ hard drive was worth about 1 million pounds (around $1.3 million). While cleaning his home, James Howells unknowingly discarded the wrong hard drive, thinking it was an empty or unused one. That hard drive, however, contained the private keys necessary to access his Bitcoin wallet, effectively locking him out of his digital fortune forever.

By the time Howells realized his mistake, the hard drive had already made its way to a local landfill, buried beneath tons of trash. As Bitcoin’s value soared in the following years, the stakes of this accidental loss became monumental. In today’s terms, those 8,000 Bitcoin are worth close to $647 million, making it one of the most significant cryptocurrency losses in history.

The Long Legal Battle

For over a decade, James Howells has been trying to gain permission to excavate the Newport landfill site where he believes the hard drive is buried. However, the Newport City Council has repeatedly rejected his requests, citing environmental concerns as the primary reason for denying the excavation. Despite Howells’ various proposals and attempts to mitigate these concerns, the council has remained steadfast in their opposition.

Howells’ latest legal move is his lawsuit for nearly half a billion pounds in damages against the council for preventing him from recovering his hard drive. He argues that the council’s refusal to grant him permission to dig up the landfill has directly led to his inability to retrieve his Bitcoin fortune. The court claim is set to be heard in December, where Howells will make his case against the council’s actions.

Also read: Bitcoin Gets a Boost as Mt. Gox Delays Mass Refund to 2025

Environmental Concerns Halts Excavation

The Newport City Council has maintained its position throughout the years, arguing that the environmental risks associated with digging up the landfill far outweigh the potential financial reward. The landfill has been flagged for breaches of its environmental permit, including elevated levels of hazardous materials such as asbestos, arsenic, and methane.

The council claims that any attempt to excavate the landfill could disturb these harmful materials, potentially posing a serious environmental and public health risk. As a result, they argue that allowing Howells to dig through the site to retrieve his hard drive would be both dangerous and irresponsible.

The council also pointed out that its operations are subject to strict monitoring and compliance protocols, which are in place to ensure that the landfill does not pose a threat to the surrounding environment. Allowing a large-scale excavation would, in their view, compromise the integrity of the site and potentially lead to significant environmental damage.

Howells’ High-Tech Plans for Recovery

Undeterred by the council’s rejections, James Howells has proposed several creative solutions to recover his hard drive safely. In 2022, he reportedly pitched a detailed $11 million recovery plan, which included the use of advanced technology and robotics to sift through the landfill’s garbage without causing environmental disruption.

According to James Howells, the plan would involve the deployment of automated systems designed to sort through the waste and identify potential locations of the hard drive, thereby minimizing the need for extensive manual excavation. This plan would not come at any cost to the council, as Howells has already secured private funding for the project. In exchange for permission to proceed, Howells even offered to share 10% of the recovered Bitcoin value with the council, which would amount to tens of millions of pounds.

Despite these efforts, Newport City Council has remained firm in its stance, expressing doubts about both the legality and feasibility of Howells’ recovery plans. They have raised concerns over whether the technology would be effective in such an unpredictable environment and whether the excavation could truly be carried out without causing harm.

A Lengthy Battle: 10 Years of Setbacks

James Howells’ quest to retrieve his lost Bitcoin has now stretched over a decade. From the moment he realized his mistake in 2013, he has made numerous attempts to secure access to the landfill, but each time, he has been met with resistance. Initially, Howells tried to appeal directly to the council with a variety of recovery proposals, only to face repeated rejections.

In the early years of his fight, Bitcoin was still a relatively new and misunderstood asset, which may have contributed to the council’s reluctance to take his requests seriously. As time passed and Bitcoin’s value skyrocketed, the stakes of the situation became more evident, but the council’s position did not change. Over the years, James Howells has garnered media attention and public support, with many people sympathizing with his plight and expressing frustration at the council’s refusal to allow the excavation.

Howells’ Last Resort

With the Newport City Council continuing to block his efforts, Howells has now resorted to legal action as his final attempt to recover his fortune. The lawsuit, which is set to be heard in December, will see James Howells and his legal team argue that the council’s refusal to allow the excavation has caused him significant financial harm. He is seeking 495 million pounds (roughly $647 million) in damages to compensate for the value of the Bitcoin that he believes could have been recovered if the council had granted him access to the landfill.

James Howells’ legal team will likely argue that the environmental concerns cited by the council could have been mitigated through the use of advanced technology and careful planning. They may also point to the fact that Howells had offered to share a portion of the recovered Bitcoin with the council, which would have provided a financial incentive for cooperation.

The Bigger Picture

James Howells’ case shows that the value of Bitcoin and other digital assets can increase dramatically over time, turning what might have once been a relatively small investment into a life-changing fortune. However, these assets are also highly vulnerable to being lost or stolen if not stored securely.

For James Howells, the mistake of accidentally discarding his hard drive has cost him nearly half a billion pounds. His decade-long legal battle highlights the importance of safeguarding cryptocurrency wallets and private keys. Investors should take care to store their hardware wallets and private keys in secure, offline locations, and to back up their recovery phrases in multiple places to avoid similar losses.

In a world where digital assets are becoming increasingly valuable, the importance of secure storage cannot be overstated. As James Howells continues his fight to recover his lost Bitcoin, his story stands as a powerful reminder of the high stakes involved in managing cryptocurrency.

A Decade-Long Battle for Bitcoin

As the court date approaches in December, the future of James Howells’ legal battle remains uncertain. Will the court side with Howells and force the Newport City Council to allow the excavation, or will the council’s environmental concerns prevail?

ZachXBT Claims Rise in Offline Crypto Theft Targeting Traders

ZachXBT, a prominent blockchain investigator, has reported a worrying rise in in-person attacks on cryptocurrency traders. According to his recent findings, physical thefts targeting crypto holders, especially through home invasions, have become more frequent. These incidents are not isolated cases; they represent a broader shift towards offline criminal activity in the cryptocurrency space.

The Rise in Physical Crypto Robberies

In an Oct. 10 post, ZachXBT disclosed that he has received an increasing number of messages from victims of home invasion robberies across Western Europe. In these cases, attackers break into victims’ homes and forcibly steal their cryptocurrency. In a particularly alarming case, a trader lost $4.3 million worth of crypto during a home invasion in June 2024.

The perpetrators reportedly obtained the victim’s personal details, including their home address, after a data breach. Pretending to be delivery personnel, the criminals entered the house armed with machetes and forced the victim to transfer funds to two wallet addresses, which remain inactive to this day.

A Troubling Trend of Offline Crypto Theft

This disturbing trend represents a shift in how thieves target cryptocurrency. Historically, cyberattacks such as phishing scams and hacking were the primary methods used to steal digital assets. Now, as more people hold valuable cryptocurrency, criminals are resorting to physical violence. ZachXBT noted that this rise in offline attacks, especially in Western Europe, signals a serious risk for crypto holders who may be unaware of the physical threats posed by their digital wealth.

The blockchain investigator shared additional details via his Telegram channel in late September, revealing that several high-profile individuals in the crypto community had been held at gunpoint and forced to transfer their assets in recent months.

GitHub’s Record of Offline Crypto Thefts

ZachXBT’s claims are supported by data from the online platform GitHub, which tracks incidents of offline crypto theft. Over the last year, there have been at least 15 reported cases globally. In 2023 alone, 17 such incidents were documented, compared to 32 cases in 2021. GitHub’s list of offline thefts dates back to 2014, when cryptographer Hal Finney was reportedly the target of an extortion attempt involving 1,000 Bitcoin.

These numbers highlight the increasing prevalence of in-person crypto crimes. What began as isolated incidents has now escalated into a consistent threat, with criminals going to great lengths to steal digital assets.

Also read: Indiana Man Pleads Guilty to $37M Cryptocurrency Theft from 571 Victims in 2022 Cyberattack

High-Profile Cases of Crypto Home Invasions

One of the more notorious cases involved Nick Drakon, the former CEO of crypto research platform Revelo Intel. On Sept. 5, 2024, Drakon revealed in a social media post that he and his family had been targeted and robbed by a sophisticated criminal group. The thieves reportedly surveilled his home and held his wife and eight-month-old son hostage while forcing him to transfer personal and company funds. Drakon later stepped down from his position due to the trauma caused by the incident.

Another recent case occurred in Florida, where a man was convicted on June 25, 2024, for leading multiple violent home invasions aimed at stealing crypto assets. Between December 2022 and July 2023, the gang carried out several attacks, using kidnapping, violence, and threats to force victims to transfer their cryptocurrency holdings.

Protecting Yourself from Crypto Theft

ZachXBT urged crypto holders to take extra precautions to protect themselves, both online and offline. He advised against sharing personal information, particularly details about crypto holdings, on social media or with acquaintances, as this can make traders easy targets for criminals.

To reduce the risk of being physically targeted, crypto holders should also:

• Use pseudonyms online to maintain anonymity.
• Store hardware wallets in secure, undisclosed locations.
• Keep private keys and recovery phrases secure, possibly using secure, offline methods.
• Install security systems in their homes and be cautious of unexpected visitors.

In-person attacks may be less common than online hacks, but they present a growing threat as cryptocurrency continues to rise in value. Staying vigilant and taking extra security measures are essential steps for anyone involved in the crypto space.