Losing bitcoins can be a true nightmare, as illustrated by five stories, including James Howells' case, who lost access to 8,000 bitcoins by discarding a hard drive.
How not to dump bitcoins: James Howells case
James Howells, a Newport resident, started mining bitcoins in 2009. Years later, his girlfriend accidentally discarded the hard disk containing private keys for his wallet with around 8,000 BTC. Realizing his loss much later, Howells tried to find the disk at the landfill he believed it was taken to, but was unsuccessful. Ultimately, he sued the Newport City Council, demanding either permission to search or £495 million compensation. In 2025, the court dismissed the case as having no realistic prospects.
IronKey on my back: the Stephan Thomas case
Stephan Thomas, a US programmer, lost the password to his IronKey hardware wallet where he stored 7,002 bitcoins. After many unsuccessful password attempts, including hiring specialists and trying hypnosis, he had only two attempts left without success.
Crypto wallet forgets the password: Peter Schiff case
Known bitcoin critic Peter Schiff in 2020 claimed his wallet stopped accepting his password, only to later find he had mixed up his PIN with a password. Since these bitcoins were gifted to him, he wasn't overly concerned about the loss.
These stories highlight the importance of cautious measures for protecting cryptocurrency assets, such as backing up data and ensuring secure storage.
