Back to the archive

The encyclopedia · Trading & Investing · Operational decision · 2013

He threw away a hard drive with 8,000 bitcoins — now worth hundreds of millions

In 2013 James Howells tossed a hard drive holding the keys to 8,000 BTC into a landfill. The coins became worth a fortune; the council won't let him dig.

Bitcoin · 2013-08

What happened

In 2009, James Howells, a computer engineer in Newport, Wales, was one of the earliest people to mine Bitcoin, using a laptop to generate coins when they were worth essentially nothing. He mined thousands of bitcoins over a couple of months, then moved on. The private keys to those coins lived on his laptop's hard drive.

In 2013, while cleaning his house, Howells accidentally threw the hard drive away — into a bag that went to the Docksway landfill in Newport. By then, Bitcoin's price had begun its long climb. The drive he had tossed held the keys to 8,000 BTC, which over the following years became worth tens and then hundreds of millions of dollars (around $750 million by early 2025).

Howells has spent years trying to get it back. He assembled a team of specialists, secured funding, and proposed an excavation — even offering to share a cut of any recovered coins with the city. But Newport City Council has repeatedly refused permission to dig, citing the environmental risks of disturbing the landfill (methane, asbestos, toxic leachate). In 2024 Howells sued the council; in January 2025 the High Court dismissed his claim. The fortune, almost certainly, is still under the rubbish.

Why it happened

  • Howells discarded the drive when the bitcoins on it were still worth little, so it was easy to treat as junk.
  • The private keys existed only on that one drive, with no backup — a single point of failure for a fortune.
  • Once the drive was in a public landfill, recovering it required the council's permission, which was refused on environmental grounds.
  • The story is a stark illustration of how digital value depends entirely on controlling the keys — lose them and the asset is gone, regardless of its price.
What it cost8,000 BTC (later worth $750M+)lucky mistake

The lesson

The most valuable thing you own may be the thing you can least see. Howells's fortune sat on a drive he mistook for junk, and once it was in a landfill, nothing could retrieve it. Back it up.

Aftermath

James Howells's case became the most famous cautionary tale in crypto, a meme about the fortune literally buried in a landfill, and a recurring news story as Bitcoin's price climbed. It is cited as a vivid lesson in key management and backups: in a system where you alone control your assets, losing the keys means losing the asset, with no bank or support line to reverse it. Howells's failed lawsuit also raised unresolved questions about who owns discarded property and the data on it.

Sources

spotted an error? The club wants to know.

Comments · 0

    Sign in to join the comments.

    More like this

    Somewhere, someone solved the problem this company failed at. 2nd Opinion →