The saga of James Howells and his $716 million (569 million British pounds) Bitcoin fortune, lost in a Welsh landfill nearly a decade ago, has taken a new turn.
Halfina Eddy-Evans, Howells’ former partner, has revealed that she threw away the hard drive containing 8,000 Bitcoin (BTC) at Howells’ request.
In an interview with the Daily Mail, Eddy-Evans said she threw away the hard drive because Howells asked her to and that “losing it was not [her] fault.”
Howells’ story highlights the risks involved in custodying digital assets like cryptocurrencies and why proper management is key to mitigating financial losses.
One hard, hard drive to find
In 2013, Howells mistakenly disposed of the hard drive while clearing out old computer parts. At the time, Bitcoin’s value was far below today’s prices, and the potential fortune on the drive went unnoticed.
According to Howell’s former partner, she took the hard drive to a landfill after being asked to dispose of the “unwanted belongings” after being “begged” to take them away.
Howells later realized the drive contained 8,000 Bitcoin he mined in 2009, a time when BTC was worth less than $1 per token. Today, the cryptocurrency’s value has soared, making the lost assets worth more than $716 million.
Howells’ legal and environmental hurdles
Since becoming aware of the lost assets on the hard drive, Howells has made multiple appeals to Newport City Council to allow a landfill excavation, but they have been refused.
The Newport City Council cited environmental risks and logistical challenges associated with digging through 110,000 tons of waste.
Howells’ has remained undeterred by the refusals after pledged to fund the excavation privately, offering an $11 million idea to locate the funds and pledging to donate 10% of the recovered funds to the council. However, the council maintains that its environmental license does not permit such an operation.
The IT engineer has since sued Newport City Council for 495 million British pounds (around $647 million) in damages for the council’s denial of his requests.
A lesson in cryptocurrency custody
The case highlights the risks of self-custody for cryptocurrency holders, with Eddy-Evans’ comments emphasizing the importance of secure storage. Planning ahead when considering self-custody is vital to ensure funds held are secure, accessible and not at risk of being lost — or discarded by an ex-partner.
Whether holding funds in an online or app-based crypto wallet or using a hardware wallet — often called a “cold wallet” — it’s crucial to store private keys and recovery options offline to reduce the risk of online hacks.
Storing multiple copies of recovery phrases and private keys in multiple secure locations, like safe deposit boxes or encrypted digital storage, can help keep funds safe and prevent financial losses.
Magazine: Crypto has 4 years to grow so big ‘no one can shut it down’: Kain Warwick, Infinex
