Buying a Landfill! The Most Famous Unsung Hero in Bitcoin’s History

GM,

This week’s podcast recording was delayed, so the episode will be released on Friday. Now, let’s get to the main topic.

One of the most classic stories in the crypto space is how, every so often, someone loses a fortune in cryptocurrency—only to come up with extraordinary ways to recover it. Some deploy drones, robotic dogs, and AI-powered mechanical arms to aid in the search. Others go as far as planning to buy an entire landfill just to retrieve a lost Bitcoin hard drive.

But did you know that all these stories actually revolve around the same person—British computer engineer James Howells? Everyone has heard about his legendary quest, yet few remember his name. He is Bitcoin’s most famous unsung hero.

Becoming a Miner

During the 2008 financial crisis, James stumbled upon a new invention called Bitcoin, which claimed to use cryptography to create a decentralized transaction system.

Although James wasn’t a cryptographer, he found the idea of freeing the financial system from corrupt bankersfascinating. His background also played a role—his father was a carpenter, and his mother worked in microchip manufacturing, so James grew up enjoying taking apart and assembling electronics.

On February 15, 2009, James began mining Bitcoin. It was at this point that he truly understood how Bitcoin worked. According to him, at the time, the entire Bitcoin network had only four nodes, and he was likely one of the first five Bitcoin miners—one of whom was probably Satoshi Nakamoto.

Each night before going to bed, James would run his mining software, earning 400 to 800 BTC in his sleep. In the morning, he’d shut it down when he needed to use his computer. On one occasion, he overslept until noon and woke up to find he had mined 1,200 BTC.

For two months, James continued this routine, accumulating around 8,000 BTC. Unfortunately, Bitcoin was practically worthless at the time, and his wife complained that the computer was too noisy, disturbing her sleep. As a result, James stopped mining and gradually forgot about Bitcoin.

Four years later, James came across a news report: a Norwegian man who started mining Bitcoin when it was worth just $10 had struck it rich—and now lived in the penthouse of a luxury apartment.

At the time, Bitcoin was worth around $150. James suddenly remembered that he owned thousands of Bitcoins—he was a millionaire! But when he went to retrieve his wallet and check the exact amount, he realized that a few months earlier, during a big cleanup, he had thrown away the hard drive storing his Bitcoin.

Buying the Landfill

During that cleanup, James had sorted through a pile of old computer parts and a small-capacity hard drive. Originally, he had asked his wife to take out the trash, but she refused. He thought, No big deal, I’ll take it out myself tomorrow and double-check that I didn’t throw away the wrong hard drive. At the time, he had two old hard drives from dismantled computers in his drawer, but he wasn’t sure which one contained the private key to his Bitcoin wallet.

The next morning, James woke up to find that his wife, being considerate, had already taken out the trash before leaving the house. He didn’t think much of it—until three months later, when he saw the news about Bitcoin’s price surge and couldn’t find his private key. That’s when it hit him: his Bitcoin hard drive was gone—sent to the landfill. At that moment, his Bitcoin was worth $630,000 (approximately 19 million TWD).

James rushed to the landfill for help. The manager took him to a massive dump site the size of a football field and explained that garbage from three months ago was likely buried 1.5 meters deep. However, excavating the site required permission from the landfill’s owner—Newport City Council.

James submitted an application, but the city council repeatedly rejected his requests, citing cost concerns, environmental impact, and legal issues—essentially telling him to give up. As Bitcoin’s price skyrocketed to $1,000, media outlets worldwide became fascinated by how Bitcoin could be mined and used. Most people talked about mining with computers—but James? He wanted to mine Bitcoin in a landfill. The bizarre nature of his situation drew massive media attention.

Despite being rejected multiple times, James refused to give up. He tried every possible way to convince the city council to open the landfill. In 2021, he proposed that if he successfully recovered the hard drive, he would donate 2,000 BTC to be distributed among the 320,000 residents of Newport. However, the city council coldly rejected the offer. By 2022, James had enlisted the help of a retired landfill manager to narrow down the search area, as well as a specialized data recovery company. Their final assessment estimated a 90% chance of finding the hard drive.

Even hedge funds stepped in, willing to invest millions of dollars to support James’ treasure hunt. His plan? Use drones, robotic dogs, and AI-powered robotic arms to sift through the buried waste and recover his lost Bitcoin fortune. The investors’ only condition was that they would split the recovered Bitcoin with him.

Since 2013, James had tried every possible way to convince the city council, but they remained unmoved, repeatedly shutting him down. Frustrated, he finally decided to take legal action—in 2024, he sued the city council for unlawfully seizing his hard drive. His argument was simple: either the city council grants his team access to search for the hard drive, or they compensate him for $600 million in lost assets. Recently, the UK court issued its ruling—James lost the case.

The judge carefully dissected the core legal question of the case: Bitcoin has always existed on the blockchain and has no direct connection to the landfill itself. The judge emphasized that there was no dispute over Bitcoin ownership—the city council never claimed to own the 8,000 Bitcoins, and both parties agreed that they belonged to James. However, the city council asserted ownership over the hard drive itself.

At first, this might sound contradictory. Isn’t the hard drive essential because it contains the private key, preventing James from accessing his Bitcoin? But the court ruled that ownership and access are two separate issues. James undoubtedly owns the Bitcoin, but his inability to access it is a separate matter that is not necessarily tied to the hard drive. The judge then cited the 1974 Control of Pollution Act, explaining that from the moment the hard drive entered the landfill, regardless of who discarded it or what data it contained, it became the legal property of the city council.

James had attempted to blur the line between digital Bitcoin and a physical hard drive, but the judge saw through his argument immediately. After all, Bitcoin private keys can be backed up in multiple locations. Why didn’t James do that? The answer was obvious. Back in those days, people were so indifferent to Bitcoin that websites were handing out 5 BTC per person for free, yet hardly anyone bothered to claim them—let alone back up their wallets.

Many believed the legal battle would continue, but recent developments took a dramatic turn. The city council announced plans to permanently close the landfill—the very site where James’ lost hard drive could still be buried. Panic-stricken, James proposed buying the entire landfill himself so he could dig freely and search for the hard drive. This bold move once again landed him in global headlines. However, as of now, the city council has not agreed to his proposal.

The Unsung Hero

James’ story is not one of greatness, but it is one of immense value. His firsthand experience from 2009 remains relevant even today—people still use his story as a reminder to safeguard their private keys.

Yet, strangely, most people only remember him as “the guy trying to dig up a hard drive from a landfill”, while few actually remember his name. In contrast, Satoshi Nakamoto vanished after creating Bitcoin, yet became a household name. Meanwhile, Laszlo Hanyecz, the man who “foolishly” spent 10,000 BTC on two pizzas, is now celebrated with respect.

James, too, brushed shoulders with fortune, yet he remains largely unknown. Perhaps it’s because his story feels too ordinary—Satoshi disappeared mysteriously, leaving behind a revolutionary invention; Laszlo laughed off his “loss”, embodying detachment and ease. By contrast, James spent over a decade trying everything possible to reclaim his Bitcoin—from seeking help to innovative search methods, and finally legal battles. His response was simply human nature—who wouldn’t want to retrieve their lost fortune?

James is like that one friend who always loses money in the most careless ways. But because his mistake continues to happen every day in the crypto world, he has become a cautionary tale rather than a mythical figure that people can never relate to. Whether James ever recovers his 8,000 Bitcoin or not, one thing is certain—he is the most famous unsung hero in Bitcoin’s history.

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