Lost Bitcoin Fortune Sparks Legal Disputes
James Howells, whose bitcoin wealth worth $716 million (£569 million) ended up in a landfill in Wales nearly a decade ago, is facing new revelations.
Howells’ former partner, Halfina Eddy-Evans, admitted that she threw away the hard drive containing 8,000 bitcoins at his request. In an interview with the Daily Mail, she explained that she acted according to his instructions and emphasized that she is not to blame for the loss.
This case highlights the risks associated with storing digital assets like cryptocurrencies and underscores the importance of secure key management.
One Hard Drive That Changed History
In 2013, Howells mistakenly discarded the hard drive while clearing out old computer parts. At the time, bitcoin’s value was significantly lower than today, and the potential fortune stored on the drive went unnoticed.
According to Eddy-Evans, she was asked to dispose of "unwanted items" at a landfill and inadvertently threw away the hard drive. Howells later realized the disk contained 8,000 bitcoins, which he had mined in 2009 when BTC was worth less than $1 per token. Today, those assets are valued at over $716 million.
Legal and Environmental Challenges
Once Howells discovered the loss, he repeatedly requested permission from Newport City Council to excavate the landfill, but his requests were denied.
The council cited environmental risks and logistical challenges related to digging through 110,000 tons of waste.
Despite the refusals, Howells offered to privately fund the excavation and promised to donate 10% of the recovered funds to the council. He also proposed $11 million to facilitate the project. However, the council maintained that its environmental license does not permit such operations.
Howells is now suing Newport City Council for damages worth £495 million (approximately $647 million) due to the rejection of his requests.
Lessons on Cryptocurrency Custody
This case underscores the risks of self-custody for cryptocurrency holders. Eddy-Evans’ admission highlights the importance of secure data storage.
To protect digital assets, it is essential to ensure that funds are safe and accessible. Cryptocurrency holders should:
Use hardware wallets (so-called "cold wallets") to minimize the risk of online attacks.Store private keys and recovery phrases offline in multiple secure locations, such as safety deposit boxes or encrypted digital storage.
By following these practices, losses like the one involving Howells’ bitcoin fortune can be avoided.
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