A British judge ruled against a man who wants to excavate a landfill where he says a hard drive with access to thousands of bitcoins was mistakenly dumped over 11 years ago.
Since 2013, James Howells has been hoping to recover a laptop hard drive that he says contains the private key for cryptocurrency which he says he mined in 2009. Ars wrote about it at the time, noting that the value of a bitcoin had just passed $1,000, making 7,500 bitcoins worth $7.5 million.
The alleged number of bitcoins has changed a bit, with Howells now saying he lost 8,000 bitcoins. The bitcoin price exceeded $100,000 last month and was $95,636 as of last Friday, or $765 million for 8,000 bitcoins.
High Court judge Keyser KC issued his ruling last week, siding with the defendant in Howells v. Newport City Council. Howells has no realistic chance of success at trial, the judge ruled. Howells sought “an order that the defendant either deliver the hard drive or allow his team of experts to excavate the landfill in order to find it, and (in the alternative) compensation equivalent to the value of the Bitcoin that he can no longer access.”
Landfill Authority Owns the Trash
The council said that excavating the landfill site would let harmful substances escape into the environment, endangering residents with “potentially serious risks which raises public health issues and environmental concerns,” the ruling said.
The judge found no “reasonable grounds for bringing this case,” saying it has “no realistic prospect of succeeding if it went to trial and that there is no other compelling reason why it should be disposed of at trial.” He granted summary judgment for the defendant, dismissing the claim.
The ruling quotes the Control of Pollution Act 1974, which states that “anything delivered to the authority by another person in the course of using the facilities shall belong to the authority and may be dealt with accordingly.” Howells “submitted that section 14(6)(c) merely says that anything so delivered shall belong to the authority but does not say that it shall cease to belong to its former owner,” the ruling said. The judge disagreed, writing that “the words ‘shall belong to the authority’ are unqualified and unrestricted.”
The judge found no reason to determine that the defendant retaining the hard drive is “unconscionable” under the law. “In my view there would be no realistic prospect of a finding that the defendant’s retention of the Hard Drive was unconscionable. The defendant was not retaining it for gain or because it wanted it. It was retaining it because it was buried in landfill,” the ruling said.
Statute of Limitations
The claim is also barred by the six-year statute of limitations because Howells “knew the facts material to his claim by November 2013 but did not commence proceedings until May 2024,” the ruling said.
The judge didn’t need to rule on whether the hard drive really contains access to bitcoin, saying that “the only relevant issues in this case concern ownership of, and rights of access to, the Hard Drive.” Howells sought access to the landfill site in Newport, Wales, starting in November 2013, but local officials refused. He says the hard drive is 2½ inches in size and has a wallet.dat file containing a private key that can enable access to the bitcoin.
The city council said excavation would breach the terms of its license with NRW (Natural Resources Body for Wales), cause health and safety risks for staff, risk damage from ground movement during or after excavation work, and prevent the council from “discharg[ing] its statutory waste disposal functions whilst the site is excavated.”