EWJ FEB 59 2025 web - Flipbook - Page 23
“Computer Says No” - Is this the
End of the Bitcoin in the Bin Saga?
by James Evison, Partner, Stevens & Bolton LLP
The world of crypto seemingly never ceases to
produce interesting legal cases - from Dr Craig
Wright’s misadventures in the English courts to the
mega-insolvencies of FTX and others in the US and
offshore jurisdictions.
Still the council said no, citing serious environmental
and public health concerns.
Undeterred Mr H took his fight to the courts in 2024,
arguing that he owned the hard drive and everything
on it and that the council should deliver it up or allow
his team of experts to search for it. The council then
successfully applied for summary judgment on the
basis that there was no realistic prospect of the claim
succeeding or other compelling reason for it to be
disposed of at trial. The court’s decision turned on
questions of property rights and limitation.
Just nine days into the New Year and already the first
interesting crypto judgment of 2025 has been handed
down in the case of Howells v Newport City Council
[2025] EWHC 22 (Ch). The backstory is a fascinating
if rather tragic one. Mr Howells claims to be the miner
and owner of Bitcoin worth in excess of £600m at recent prices. However, in 2013, he says his partner accidentally threw away a hard drive containing the
private key. As the saying goes - “no key, no coin”. So,
Mr H has, understandably, made huge efforts to try to
secure the return of the hard drive. However, Newport City Council – which owns and operates the landfill site in which Mr Howells believes the hard drive
ended up – has steadfastly refused to allow him to
search for it.
Crucially, Mr H was not able to establish any property
rights in the hard drive on the basis that, under clause
14(6)(c) of the Control of Pollution Act 1974, it belonged to the council on delivery to the tip. The court
held that this was a complete answer to the claim. The
fact that the key was recorded on the hard drive did
not help Mr H – the record was held to be information
rather than property. Further, any intangible property or property within a third category (“data objects”
as the Law Commission has dubbed it) in relation to
the Bitcoin was not physically located in the hard
drive. A limitation defence was also available to the
council in respect of a constructive trust claim.
Armed with funding from a hedge fund, Mr H has
reportedly put forward extensive search and recovery plans involving a mechanical arm, drones and
robotic dogs to search for the drive. He even offered
the council 10% of the Bitcoin – potentially equivalent
to around £60m – in return for allowing the search.
We will have to wait and see whether that is the end of
this long running story.
Mr Haitham Hamoda
Mr Stephen Farnfield
Consultant Gynaecologist, Subspecialist in
Reproductive Medicine and Surgery,
Clinical Lead Menopause Service King's
College Hospital
EXPERT FINANCIAL WITNESS
Earnings, Pension Loss, Loss of Dependency,
Lost Years, Form of Award (PPO v LUMP SUM) and
Settlement Assessment Reports
MD FRCOG
Mr Haitham Hamoda is a Consultant Gynaecologist and Subspecialist in
Reproductive Medicine and Surgery and the Lead for the Menopause Service at
King’s College Hospital. He is Trustee and past Chair of the British Menopause
Society.
Expert Financial Witness Specialising in Personal Injury and Clinical Negligence Cases
where there is a loss of Earnings and Pension Loss. I also regularly provide pension
loss calculations for Employment cases.
Over the last 14 years I have provided more than 500 expert pension reports, with
their respective values ranging from £10,000 to over £1m.
Areas of specialist interest are:
G Menopause
G Premature ovarian insufficiency (POI)
G Infertility and IVF
G Gynaecological endocrine including PCOS.
G Gynaecology including fibroids /endometriosis & gynaecological ultrasound
scanning
G PMS / PMDD
Due to the complex nature of pensions and the current pensions legislation it is often
advisable for me to complete the Loss of Earnings Calculations within the same report.
This way I can ensure that there is a clear and accurate treatment of Tax, National
Insurance and Pension Contributions through the claim.
When preparing Loss of Earnings Calculations, I will ensure that correct tax treatment
of employment benefits are taken account of such as: Death in Service, Private
Medical Insurance, Company Car etc.
Regularly I am asked to provide figures in relation to Loss of Dependency in fatal
cases as well as Lost Years calculations in cases where there has been a reduction in
life expectancy due to the injury/negligence.
Mr Hamoda has published widely in his specialised field and is actively involved in
ongoing research projects both locally and nationally. He is first author of The
British Menopause Society & Women’s Health Concern 2020 recommendations on
hormone replacement therapy in menopausal women and author of the British
Menopause Society guideline on the management of women with premature
ovarian insufficiency 2017.
My reports are detailed and CPR Compliant they are designed to be easy for the
reader to digest and understand. I pride myself on my evolving approach to dealing
with issues and the good relationship that I build with my instructing solicitors.
Where approval has not been sought/granted for a formal expert I work on the basis
of acting as an agent of the instructing firm. I can provide white labelled reports and
calculations that then form the basis of the claim for loss of earnings and pension.
Mr Hamoda is a Fellow of the Royal College of Obstetricians and Gynaecologists
and was awarded a degree of Doctor of Medicine (MD) from the University of
Aberdeen. He obtained his accreditation as a subspecialist in reproductive medicine
at Guy’s and St Thomas’ Hospital.
I am often asked to provide comment on the appropriate form of award for individuals
as they approach settlement. Is a Lump sum only award or a reduced lump sum and
annual income the best route? At this stage I will discuss with the key stakeholders and
provide a detailed analysis of not only the mathematics but also of the softer factors
that need to be taken account of such as life expectancy, individuals preferences and
the wider economic environment.
Contact: Mr Haitham Hamoda
Tel: 0203 146 6255
Email: haithamhamoda@gmail.com
Area of work: London and surrounding areas
EXPERT WITNESS JOURNAL
Telephone: 07828 554215
Email: steve@paladingroupltd.com
Website: www.paladingroupltd.com
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