Welshman Launches Bitcoin Layer-2 Project Backed by Lost $923M BTC After Landfill Recovery Fails

• James Howells lost 8,000 BTC after accidentally discarding a hard drive containing private keys in a landfill.

• Despite multiple offers and legal attempts, Newport City Council refused to allow excavation or sale of the landfill.

• Howells plans to launch Ceiniog, a Bitcoin layer-2 token, aiming to match the $923 million value of the lost Bitcoin.

Discover how James Howells turns a $923M Bitcoin loss into a new crypto project with Ceiniog. Read the full story and latest updates now.

Why James Howells Is Launching a Bitcoin Layer-2 Network After Losing $923M BTC

James Howells, a Welshman, has officially ended his 12-year attempt to recover 8,000 Bitcoin lost in a Newport landfill. Instead, he is launching Ceiniog, a Bitcoin layer-2 network that is theoretically backed by the lost BTC. This innovative move aims to create a new crypto cultural hub, leveraging the value of his buried Bitcoin despite having no access to the private keys.

How Did James Howells Lose His Bitcoin?

During an office cleanup, Howells’ then-girlfriend accidentally discarded a hard drive containing the private keys to over 8,000 BTC. The hard drive was sent to a landfill in Newport, Wales. Since then, Howells has tried every possible avenue to recover it, including public proposals, legal action, and a formal offer exceeding £2.5 million ($3.32 million) to purchase the landfill, all of which were ignored by Newport City Council.

What Challenges Did Howells Face in Recovering His Lost Bitcoin?

Howells encountered significant obstacles, including legal setbacks where environmental concerns halted excavation plans. His £25 million-plus offer to buy the landfill was met with silence. He describes the council’s refusal as a lack of leadership and logic, stating that despite the Bitcoin’s soaring value, the establishment remains uncooperative.

What Is Ceiniog and How Will It Work?

Ceiniog is a Bitcoin layer-2 network named after a medieval Welsh currency. Howells plans to launch an initial coin offering (ICO) later this year, tokenizing 21% of the lost Bitcoin’s theoretical value. While Ceiniog tokens do not grant access to the buried BTC, they represent its value in a Web3 environment, creating a tradable asset backed by the immovable Bitcoin balance.

How Does Ceiniog Compare to Traditional Asset-Backed Tokens?

Unlike stablecoins backed by cash reserves or gold-backed notes redeemable for physical gold, Ceiniog tokens are backed by Bitcoin that cannot be accessed or moved. Howells emphasizes that the tokens’ value depends on public verification that the 8,000 BTC remain untouched in the landfill, ensuring the backing remains intact.

What Are Howells’ Plans for Ceiniog’s Development and Community?

Howells will lead the initial development of Ceiniog and intends to onboard community developers funded through token allocations. He envisions Ceiniog as a cultural hub featuring Runes, Ordinals, and crypto applications, with ambitions to bring the project back to Newport as a symbolic gesture against the local council’s refusal to cooperate.

For over 12 years, I tried everything to engage with Newport City Council:
•Public Proposals
•Percentages
•Mediation
•Legal action
•AND a formal £25M+ offer
$1 Billion and they ignored it all.
No response. No logic. No leadership.
They want me to give up, but #crypto is forever.
pic.twitter.com/z9IWrurojD

— James Howells (@howelzy) August 4, 2025

Frequently Asked Questions

How did James Howells lose his Bitcoin?

James Howells lost his Bitcoin when a hard drive containing the private keys to 8,000 BTC was accidentally discarded in a Newport landfill during an office cleanup by his then-girlfriend.

What is Ceiniog and how is it backed?

Ceiniog is a Bitcoin layer-2 network launched by Howells, theoretically backed by the 8,000 BTC lost in the landfill. The tokens represent the value of the buried Bitcoin but do not provide access to the actual coins.

Why can’t Howells recover his lost Bitcoin?

Despite multiple offers and legal attempts, Newport City Council has refused excavation or sale of the landfill citing environmental concerns and other reasons, effectively blocking Howells’ recovery efforts.

Key Takeaways

• Lost Bitcoin: 8,000 BTC worth approximately $923 million remain buried in a Newport landfill.
• Recovery Attempts: Howells made multiple offers and legal efforts to recover the Bitcoin but was blocked by local authorities.
• New Initiative: Launching Ceiniog, a Bitcoin layer-2 network, to create tradable tokens backed by the lost BTC’s value.

Conclusion

James Howells’ transition from a 12-year recovery quest to launching Ceiniog marks a unique approach in the crypto space, blending lost asset backing with innovative blockchain solutions. While the lost Bitcoin remains inaccessible, Ceiniog aims to build a vibrant crypto community and redefine asset-backed tokens, signaling a bold new chapter for Bitcoin layer-2 networks.