Bitcoins Seized In Drug Bust

First time accepted submitter Salo2112 writes "In a case believed to be the first of its kind, federal authorities have seized a Charleston man's virtual currency due to an alleged drug law violation with possible links to a shadowy online black market. From the article: 'The U.S. Drug Enforcement Administration recently posted a forfeiture notice indicating that agents had seized 11.02 Bitcoins worth $814 from 31-year-old Eric Daniel Hughes for allegedly violating the federal Controlled Substances Act. No other details were provided.'"

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Re:It was bound to happen

[Anonymous Coward]

Yes, we get that Bitcoin is potentially useful for tax evasion. Can you spell out why that is socially desirable?

There are massive arguments in favour of tax havens. Most effect and help people who don't use them more then you would ever think.
The biggest one in my opinion is that it creates competition for governments. You might think this is a bad thing if you are a big and unwieldy government, who isn't providing visible value for the taxation. But if you are a normal person, then it means that there is downward pressure on the government to provide value for the money it is stealing from its citizenry.
Forbes: Why Tax Havens Are A Force For Good
CATO Institute: Why Tax Havens Are a Blessing
Foundation for Economic Education: In Praise of Tax Havens

Re:It was bound to happen

[HairyNevus]

Actually, I didn't see the second link. After following the four links [1] [2] [3] [4] on that page (starting right under the picture) it might be that the tumbler system was exactly what they traced. I'm still trying to make heads or tails of these links in combination with this transaction provided above which seems to show the DEA account (1ETD...) sending money.