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.'"

Comments

It was bound to happen

[mcgrew]

I'm surprised it took so long.

Re:It was bound to happen

[Anonymous Coward]

Yes, but only because the USA's Federal Government hates competition.

Re:It was bound to happen

[Anonymous Coward]

And have a good backup. Even if the seized money is encrypted, it's still seized and unlikely to be returned.

Re:It was bound to happen

[pecosdave]

Why is this statement modded down? It's a perfectly legitimate assessment of the flow of money and labor. If people were allowed to trade their own labor or goods without having to invoke the mandatory use of Federal Reserve notes/bits it would be much more difficult for the USA's Federal Government to put a toll on that transaction. Indeed Bitcoin is a competing currency that allows people to bargain directly with one another which the Federal Government would interpret as competition - in much the same way Taxi unions in Houston declared bicycle rickshaws as "stealing" from them and had the rickshaws regulated out of existence. The US Government - unlike the Taxi Union - sees ALL business transactions done without them as competition and since they have direct law making power will address such things directly.

Re:It was bound to happen

[Anonymous Coward]

Surely you mean the moron with Insightful mod?

"Guy got caught dealing drugs, got his posessions confiscated, there were Bitcoins in there" - "It's because govt hates Bitcoin!"

FFS, from items in other case in the seizure notice:

13-DEA-582125, Snap-On Tool Cabinet and Assorted Tools, (1) Snap-On Rolling Tool Cabinet, #:s437254a; (6)
Assorted Testers; (1) Snap-On 8 piece 1/2" Rachet/Wrench Set; (1) Snap-On 4 piece 1/2" Rachet/Wrench Set; (36)
Assorted Screwdrivers; (16) Speciality Tools; (32) Assorted Allen Wrenches; (56) Assorted Sockets 3/8"; (22) Socket
Extensions 3/8"; (1) Adapter 1/2" - 3/4"; (11) Assorted Rachets/Wrenches; (1) Nut Driver 1/4"; (1) Allen Tool Combo;
(1) Ryobi Drilling and Driving Accessory Kit; (36) Assorted Rachets/Wrenches/Sockets; (5) Assorted Snap-On Tools;
(4) Assorted Rachet/Extensions; (8) Assorted Vice Grips/Wrenches; (1) Blue Point Rachet Wrench Set 5/16"-3/4";
(68) Assorted Combination Wrenches; (1) Snap-On Box End Combo 7/8"; (3) Assorted Wrench Sets; (1) Roberts
Knee Kick Carpet Stretcher 10-412; (1) Snap-On 3x5 Toy Tool Box; (1) Ryobi Temperature Sensor, #:CW1112; (9)

Government hates wrenches!

captcha: deluding - it surely knows.

Re:It was bound to happen

[__aaltlg1547]

They haven't banned cigarettes due to their being used to fund terrorism. We'll see.

Re:It was bound to happen

[fustakrakich]

You don't have to convicted of anything to have your property stolen by the government. It has eminent domain over everything you have, including the corpse you presently occupy.

Re:It was bound to happen

[Fnord666]

In the War on Drugs in the US, the Police can and will confiscate all your property if you are accused of a drug felony.

FTFY

Re:Which country do you live in?

[AK Marc]

The other issue is that seizure is without proceeding. If you don't declare your cash when traveling across borders, they'll presume it's illegal and seize it until you prove otherwise (and that's long and expensive). If you do declare it, they'll likely seize it as well, they'll just know how much and where to look.

There have been more than one case of a police officer (often chief or higher-up) that ordered a raid of a house, no drugs found, house still seized, then used as an undercover or safe house that made it functionally that officer's house. When you give financial incentive to bad behavior, then the bad behavior is encouraged, even if that wasn't the goal.

There are simple fixes, but the governments don't ever agree to them. They like the for-profit seizures and tickets. The agency issuing fines (or seizures) shouldn't be the agency keeping the money. When you separate the money, you'll change the behavior. No matter how many speeding tickets the town issues, there will be no income from it. You'd see the speed traps decrease, and a greater focus on safety, rather than revenue. Make percentage-take camera systems illegal (where the company running the cameras gets a portion of the revenue). There are documented cases where they shortened yellow lights to catch more people, decreasing safety to get more revenue.

Money is causing corruption, so remove the money from the equation.